They had bought the company’s share in May 2014 at an average price of Rs 97 per share, making over 80 per cent returns on their investments in two years.
The recent surge in caustic soda prices did enable PACL narrow its net loss substantially to Rs 18 lakh during the March quarter.
Kerosene and LPG are sold well below their cost of production. Currently, under-recoveries on kerosene and LPG are Rs 13.1 a litre and Rs 116 per cylinder, respectively.
The transaction is valued at an enterprise value (EV) of around $430 million (about Rs 2,900 crore). Earlier in the fiscal, the company also monetised its two data centres for Rs 3,800 crore.
A response from Mandhana to ET’s email query said there were no new developments apart from the disclosure made to exchanges on Tuesday. Khan’s foundation did not respond to an email questionnaire.
Gold prices have risen by 7% in the last couple of days and the rally may continue given the yellow metal’s status as a safe haven during uncertain times.
In last few years, the stock has enjoyed good investor interest due to company's tie-up with 'Being Human', which although smaller in size was most profitable.
It has been observed that investing in companies with improving financials and low price-earnings (P/E) ratios give good returns over medium to long term.
Indian stocks are among the most favoured in emerging markets, but actual earnings performance may belie that sunny outlook.
The 8-10 pc rise till date has dented the company's financials in the recent quarter, resulting into the stock correcting by 20 pc in the current year.
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