Ace investor Rakesh Jhunjhunwala is sitting on a revenue of over Rs 30 crore from his funding in Ion Change inventory because the starting of this yr. On December 31, 2018, Ion Change inventory stood at Rs 372.4. Jhunjhunwala held eight lakh shares on the finish of December quarter valuing his stake at Rs 29.79 crore. Until the tip of June quarter, his shareholding remained unchanged. Ion Change share worth stood at Rs 668.95 on June 28 this yr (June 29 and June 30 had been Saturday and Sunday). That amounted to a revenue of Rs 23.72 crore (Rs 53.51 crore minus Rs 29.79 crore) for the massive bull in the course of the first two quarters of this monetary yr.
Jhunjhunwala offered 25,000 shares of the agency within the September quarter which introduced his holding to 7.75 lakh shares or 5.29% stake within the water and setting administration agency. Worth of his holdings for September quarter amounted to Rs 51.84 crore. Its share worth hit an intra day excessive of Rs 753 on BSE at present leading to a revenue of Rs 6.51 crore (Rs 58.35 crore minus Rs 51.84 crore) because the starting of September quarter assuming the massive bull’s shareholding has not modified within the present quarter.
He’s sitting on a revenue (Rs 23.72 crore plus Rs 6.51 crore) of Rs 30.23 crore in Ion Change inventory this yr. Share worth of Ion Change has gained 101.48% within the final one yr and risen 101.13% because the starting of this yr. Nevertheless, the small cap share has misplaced 1.36% in final one week. It closest competitor VA Tech Wabag has misplaced 34.18% because the starting of this yr and fallen 34.25% throughout final one yr.
Jhunjhunwala purchased the Ion Change inventory for first time in December 2007 quarter. He held 2.53% stake or 3,19,000 shares of the agency ultimately of December quarter.
Robust monetary efficiency
Of late, the corporate has reported robust monetary efficiency pushing the inventory larger. It reported a 127.24% rise in web revenue to Rs 25.36 crore for the quarter ended September towards Rs 11.16 crore revenue within the corresponding quarter of earlier fiscal. Earnings per share rose 127% to Rs 22.19 in Q2 of present fiscal towards Rs 9.78 in September quarter of final fiscal.
Through the first half of present fiscal, the agency clocked 82.27% rise in web revenue to Rs 39.06 crore towards Rs 21.43 crore revenue in the identical interval of earlier fiscal. Complete earnings for six months ended September 2019 rose 50.03% to Rs 747.39 crore in comparison with Rs 498.16 crore whole earnings within the corresponding interval of earlier fiscal. The agency has worth to earnings ratio of 12.76 in comparison with trade PE of 18.27.
However, its peer VA Tech Wabag has PE ratio of 9.15. PE ratio is calculated by dividing the market worth of a share by earnings per share. If a inventory has PE ratio of 25, it means one wants to speculate Rs 25 within the share to earn Rs 1.
Ion Change has a wholesome worth to guide ratio of two.68 in comparison with P/B ratio of 0.98 for VA Tech Wabag. P/B ratio compares the value of inventory (market worth) to its guide (accounting worth). Ideally, worth to guide worth of a inventory must be larger than 1 however lesser than 3.
A inventory having guide worth larger than 1 is taken into account overvalued and conveys that the market is keen to pay greater than every rupee of guide worth. E-book worth of an organization is measured by the distinction between whole belongings and exterior liabilities.