According to Ace Equity data, Amitabh Harivansh Rai Bachchan, also known as Big B, has held 3,32,800 shares, or a 2.45% stake, in this company since September 2018. DP Wires here.
Amitabh Bachchan, the actor from Bollywood, made a fortune in an NSE-listed smallcap firm that manufactures wire. According to Ace Equity data, Amitabh Harivansh Rai Bachchan, also known as Big B, has held 3,32,800 shares, or a 2.45% stake, in this company since September 2018. DP Wires here.
The wiring company’s share price has increased 4.87 times, or 387 percent, to Rs 360.35 on March 1, 2023, from Rs 74 on September 3, 2018. With the smart moves in its shares, DP Wires’ market capitalisation has risen to Rs 488.92 crore, up from Rs 100.40 crore in September 2018. On September 20, 2022, the scrip reached a record high of Rs 502.80. Here’s everything you need to know about DP Wires:
Background and business
The Madhya Pradesh-based company manufactures and supplies steel wires and plastic films for use in industries such as oil and gas, power, environment, civil, energy, automobiles, and infrastructure.
Plastic products manufactured by the company have been used in the lining of canals, landfills, highway and road constructions, ponds, tanks, water reservoirs, mining and solution ponds, and for corrosion resistance on steel tanks. Wire products are used in construction, bridges, oil & gas, and infrastructure.
Pattern of stock ownership
As of December 31, 2022, promoters owned 70.40 percent of the company. Retail investors and high-net-worth individuals owned 8.88% and 8.85% of DP Wires, respectively.
The report card
The company’s net sales increased by 25.70% compounded annually to Rs 613.24 crore in FY22 from Rs 195.38 crore in FY2017.
Net profit, on the other hand, increased at a compounded annual rate of 42.05 percent during the same time period. The company’s bottom line increased from 5.02 crore to Rs 29.05 crore during the period mentioned.
The company’s net sales increased by 90.54 percent to Rs 828.67 crore in the nine months ending December 31, 2022. Net profit increased 17.61 percent to Rs 25.95 crore during the same period.
The company’s annualised earnings per share increased to Rs 27.44 in Q3FY23 from Rs 8.88 in the fourth quarter of FY19. According to its investor presentation, the company had ‘nil’ net debt as of December 2022.
DP Wires stated in its most recent investor presentation that the business environment remains challenging and that it is expected to peak as global inflationary pressures ease.
“The domestic demand for steel in India remains strong. The increased budgetary allocation of Rs 10 lakh crore to infrastructure in the Union Budget 2023-24 provides an additional boost. In addition, with the company’s wide range of value-added products, increased production capacity, a solid customer base, and a strong balance sheet, we expect to maintain the growth momentum going forward,” the company said.