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Dolly Khanna portfolio: In the wake of stock market rebound post-Covid-19 selloff, a good number of stocks have delivered multibagger return to its shareholders this year. Butterfly Gandhimathi Appliances shares are one such stock that has doubled its shareholders’ money in last one year. This multibagger stock is one of the Dolly Khanna shares and it has surged from around ₹410 to ₹875 per share levels in last one year, logging around 110 per cent rise in this period. However, stock market analysts are still bullish on the counter and expecting this stock to hit 4 digits in next two quarters.
Highlighting the fundamentals that may further fuel this Dolly Khanna price rally; HDFC Securities research report says, “Butterfly Gandhimathi Appliances has shown consistent improvement in financial performance parameters with lower working capital days, reduction in debt and improved return ratios. We expect it to maintain RoCE of over 30 per cent in FY24E. We expect revenue and earnings to grow at CAGR of 17.7 per cent and 34.4 per cent, respectively, over FY21-24E. We have assigned P/E multiple at reasonable discount compared to its listed larger peers.”
“Butterfly Gandhimathi Appliances will be one of the biggest beneficiaries of the continued growth in the domestic kitchenware segment. The strong historical patronage of the “Butterfly” brand, continuous innovations and premium quality products will support revenue growth. We are positive on the company because of its established brand recognition, diversified product profile, and moderate financial risk profile. Strong presence of the company in all segments of domestic appliances industry including LPG stoves, Mixer Grinders, Cookers and Table Top Wet Grinders, planned new launches and expanded network of dealers will help the company to consolidate its recent gains further and grow ahead of the industry in the coming years. The management is focused on increasing the share of e-commerce, exports and modern retail channel to support growth going forward,” HDFC Securities research report said.
Asked about what technical chart pattern reflects about this Dolly Khanna share; Sumeet Bagadia, Executive Director at Choice Broking said, “The multibagger stock looks positive on chart and one can buy and hold the counter for ₹970 to ₹1000 targets maintaining stop loss at ₹825 levels.”
On its suggestion to share market investors in regard to stock market investors, HDFC Securities said, “We think the fair value of the stock is ₹950 and the bull case fair value is ₹1016 over the next two quarters. Investors can buy the stock in the band of ₹870 to ₹875 and add on dips to ₹765 to ₹770 band.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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