Multibagger Stock: ₹11 to ₹122 in a year | A good investment opportunity?

Multibagger Stock

Penny stock Intellivate Capital Ventures has given massive returns. The stock surged from ₹11.63 to around ₹122.11 currently, rallying as much as 950 percent year-to-date (YTD).

Technical Indicators

• Moving averages: The chart doesn't show any moving averages. However, based on the general trend, the price seems to be above both the short-term and long-term moving averages, indicating a bullish trend.
• Relative Strength Index (RSI): The RSI is not visible on the chart.

Fundamentals

Business: Venture capital firm investing in diverse sectors like IT, media, finance, infrastructure, etc.

• Market Cap: ₹546.52 Cr (as of Dec 27, 2023)
• Recent Price: ₹116.30 (as of Dec 27, 2023)
• Promoter Holding: 49.54% (reduced from 73.25% in past years)
• Company financials: ICV's financials have been improving lately. The company's revenue and profit have grown significantly year-over-year. However, the company's return on equity (ROE) and return on capital employed (ROCE) are low, which is a concern.
• Industry outlook: The Indian capital markets industry is expected to grow in the coming years, driven by factors such as increasing household savings and rising disposable incomes. This bodes well for ICV, which operates in this sector.
• Overall market conditions: The Indian stock market has been volatile in recent months, but it has recovered from its lows and is now trading near all-time highs. This positive market sentiment could support ICV's stock price.

Overall, the technical and fundamental factors suggest that ICV is a good investment opportunity. However, it is important to remember that past performance is not necessarily indicative of future results. You should always do your own research before making any investment decisions.

Shareholding Pattern

• Promoters: 49.54%
• Mutual Funds: 5.67%
• Public Shares: 44.79%

Here are some additional things to consider

• The stock price of ICV has been very volatile in recent months. This could be due to a number of factors, such as the company's financials, the overall market conditions, or specific news events.
• ICV is a small-cap stock, which means that it is less liquid than large-cap stocks. This could make it more difficult to buy and sell ICV shares.
• ICV is a relatively young company, and it has not yet established a long track record of profitability. This could increase the risk of investing in ICV.

Last 5 Years' Financial Performance

Year	Sales (Cr.)	Net Profit (Cr.)	Reserves (Cr.)	Assets (Cr.)	Debt (Cr.)
2022-23	0.49	1.29	22.98	81.01	0
2021-22	0.24	0.8	18.57	70.58	0
2020-21	0.29	0.31	14.92	55.7	0
2019-20	0.39	0.57	11.13	47	0
2018-19	0.07	0.05	6.28	34.97	0

Market Signals

Positive

• Strong revenue and profit growth in FY23
• Positive industry outlook for Indian capital markets
• Stock price up 900% YoY (as of Dec 27, 2023)

Negative

• Low ROE and ROCE
• Promoter holding decrease
• Stock price volatility
• Small-cap company with limited liquidity

Conclusion

Intellivate Capital Ventures Ltd has shown strong financial performance in recent years, supported by a promising industry outlook. However, concerns remain regarding low return ratios and decreasing promoter holding. The stock price has been volatile and is considered a small-cap with limited liquidity. Investors should carefully consider both positive and negative signs before making any investment decisions.

DISCLAIMER: This article by Eivod is general in nature. We provide investment opinions, based on historical data and our articles are not intended to be investment advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis, driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.