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Business News/ Markets / Stock Markets/  Multibagger Alert! From 20 to 200, small-cap stock Aayush Foods and Herbs soars 900% in one year
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Multibagger Alert! From ₹20 to ₹200, small-cap stock Aayush Foods and Herbs soars 900% in one year

Shares of food firm Aayush Foods and Herbs have given exceptional multibagger returns to their investors in the last 1 year. This stock has soared 900 percent in this period, from ₹20 in March 2023 to currently trade at ₹200.

Shares of food firm Aayush Foods and Herbs have given exceptional multibagger returns to their investors in the last 1 year. This stock has soared 900 percent in this period, from ₹20 in March 2023 to currently trade at ₹200.Premium
Shares of food firm Aayush Foods and Herbs have given exceptional multibagger returns to their investors in the last 1 year. This stock has soared 900 percent in this period, from 20 in March 2023 to currently trade at 200.

Shares of food firm Aayush Foods and Herbs have given exceptional multibagger returns to their investors in the last 1 year. This stock has soared 900 percent in this period, from 20 in March 2023 to currently trade at 200. Meanwhile, in the last 4 years, since March 2020, the stock has given multifold returns, skyrocketing 1,251 percent from 14.80.

However, in 2024 year-to-date (YTD), the stock is up a little over 254 percent, giving positive returns in all 4 months till date. It jumped almost 14 percent in April so far, extending gains for the seventh straight month since October 2023. Between October 2023 and April 2024 till date, the stock has skyrocketed 652 percent.

Meanwhile, this year, it rose almost 40 percent in March, 51.2 percent in February and 47.2 percent in January.

Read here: Ashish Kacholia raises stake in multibagger stock despite 250% rally in one year

The stock hit its record high of 200.15 in intra-day deals today, April 9, 2024. It has now surged over 964 percent from its 52-week low of 18.80, hit on April 12, 2023.

Aayush Food and Herbs Limited engages in the trading of rice in India and internationally. The company offers basmati and non-basmati rice. It offers its products through a network of dealers, agents, companies, etc. The company was formerly known as Patanjali Food and Herbs Limited and changed its name to Aayush Food and Herbs Limited in March 2010. Aayush Food and Herbs Limited was incorporated in 1984 and is based in New Delhi, India.

Read here: Multibagger Stock: Ethos soared over 160% in a year, climbed 190% from IPO price

Earnings

In the December quarter, the net profit of Aayush Food and Herbs was at 3 lakh as against a net loss of 13 lakh during the previous quarter ended December 2022. However, the company had not disclosed any revenue for Q3FY24 as well as the corresponding quarter last year.

Brokerage view

According to ICICI Direct, Aayush Food and Herbs exhibits several strengths, like it hit a new high today as well as has no debt. Additionally, the stock has demonstrated strong momentum, with its price above short, medium and long-term moving averages. These strengths underscore the company's ability to generate profits, optimise capital utilisation, and deliver value to its shareholders.

Read here: Multibagger Stock: Rajratan Global Wire generated over 300% returns in 3 years

Meanwhile, its weaknesses, as per the brokerage, are: 

- Declining Net Cash Flow: The company is not able to generate net cash.

- Book value per share of the stock has been deteriorating for the last 2 years.

About smallcap stocks

Small-cap stocks can hold allure for investors seeking high returns. However, it's crucial to acknowledge the significant risks associated with them. These stocks may not be suitable for all investors, especially those who prioritize stability and are averse to risk. Individuals comfortable with high-risk investments and willing to allocate a small portion of their portfolio should consider them, but seeking guidance from a financial advisor is strongly advised before proceeding.

Read here: 24 stocks in Nifty Microcap index delivered gains between 200% and 470% in last 1 year

Small-cap stocks present unique challenges. They often belong to obscure, lesser-known companies with minimal analyst coverage and limited publicly available information. The lack of transparency and access to management insights complicates investment decisions further.

Moreover, small-cap stocks are susceptible to various risks, including illiquidity, high trading costs, and challenges associated with low trading volumes. Unless backed by compelling reasons supported by thorough research, investing in small-cap stocks may not be advisable for investors seeking stability and long-term growth in their portfolios.

Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.

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Published: 09 Apr 2024, 04:09 PM IST
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