Multibagger: Sanghvi Movers shares continue their bull run for 5th straight year, up 2765% in 4 years

In the dynamic and often unpredictable realm of equity markets, achieving consistent returns for shareholders over an extended period stands as a notable accomplishment. Despite market volatility, economic downturns, and industry disruptions, a select few stocks have demonstrated remarkable resilience and stability.

Sanghvi Movers, the flagship company of the Sanghvi Group, epitomises this resilience, consistently delivering favorable returns to its investors. Over the last one year, the shares have delivered a return of 250% and in the last four years, they have grown from ₹46.15 apiece to the current trading price of ₹1,323, resulting a stellar return of 2766%.

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For instance, an investor who allocated ₹one lakh during this period and retained their investment until today would witness their wealth burgeon to an impressive ₹28.6 lakh. Examining the stock's annual performance reveals its consistent growth: in CY20, it yielded a 30% return, followed by a remarkable multibagger return of 118.67% the subsequent year. 

In CY22, it generated another substantial return of 37.5%. Further, it concluded CY23 with a stellar return of 152%, and in the current year, it has already surged by 62%.

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Sanghvi Movers is the largest crane rental company in India and Asia and is ranked the sixth largest in the world. It is engaged in the business of providing hydraulic and crawler cranes to various industries such as power, windmills, steel, railways, metro, petrochemicals, the cement sector, and many others. 

In March of this year, the company established a wholly-owned subsidiary called Sangreen Renewables, specializing in the wind and solar power sector. This new entity is dedicated to offering comprehensive turnkey services to independent power producers, covering everything from conceptualization to the commissioning of wind turbine generators.

According to industry experts, the company is currently benefiting from the ongoing capex upcycle across sectors.

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The crane rental market in India is primed for significant growth, buoyed by the government's steadfast commitment to bolstering infrastructure development. In the recent interim budget (2024-2025), the government amplified the capital outlay by 11.1% to ₹11,11,111 crore, equivalent to 3.4% of GDP.

With ambitious targets outlined by the Indian government for the expansion of highways, railways, airports, and other key infrastructure projects, Sanghvi Movers is poised to capitalize substantially on these opportunities. 

Moreover, capacity expansions in the private sector, particularly in the steel and cement industries, will further fortify the company's growth trajectory.

Regarding financials, the company posted a consolidated net profit of ₹61 crore for the December ending quarter, a significant 74% jump from the ₹35 crore net profit recorded in Q3 FY23. The total revenue from operations clocked a YoY growth of 37% in Q3 FY24, reaching ₹167 crore. 

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.