Precision Camshafts, a Vijay Kedia portfolio stock, has rallied more than 30% in the last five sessions. The stock hit a new 52-week high of Rs 149 per share on Tuesday, after locking at an upper circuit of 20% on Monday.
Precision Camshafts shares surged this week after ace investor Vijay Kedia picked up a stake in the small-cap company. As per the company's latest shareholding data on BSE, Kedia owns 10 lakh shares, or a 1.05% stake, in the company.
Kedia's name did not appear in Precision Camshafts' shareholding data for the quarter ended December 2022, which means that the investor must have either bought the entire stake sometime through Q4FY23 or consistently increased his holding to over 1% through multiple quarters.
As per the latest corporate shareholdings filed, Vijay Kedia publicly holds 17 stocks with a net worth of over Rs 819 crore, Trendlyne data showed. Other stocks in which Vijay Kedia has holdings include Neuland Labs, Heritage Foods, Siyaram Silk Mills, and Atul Auto.
Precision Camshafts is one of the largest camshaft manufactsrers in the world and supplies camshafts to major original equipment manufacturers (OEMs). The stock has been a multibagger, delivering 354% returns over the last three years. In the past month as well, the stock has gained around 58%.
Precision Camshafts has a market capitalization of Rs 1,345 crore. It has a low return on equity of 6.75% and an ideal debt-to-equity ratio of 0.2. Moreover, it has a dividend yield of 0.8%.
Precision Camshafts shares were last trading at a price-to-earnings ratio of 20.77, which is significantly lower than the industry P/E ratio of 32.91, indicating that the stock might be undervalued as compared to its peers.
The auto-ancillary company reported consolidated revenue of Rs 278 crore in Q3FY23, indicating an increase of 14% from year-ago period. Its net profit rose 38% YoY in December quarter at Rs 18 crore.
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