Multibagger Stock DP Abhushan Surges to Near Lifetime High After Impressive Q1 2024 Results | Stock Market News

DP Abhushan shares have become a multibagger stock in the Indian stock market since their listing in November 2020. This jewellery stock has surged about 1100 percent in nearly four years. Investors continue to have high expectations for this stock.

Q1 2024 Results

On Thursday, DP Abhushan announced its Q1 results for 2024. Following the announcement, the stock opened with a gap up, reaching an intraday high of ₹1,440 per share, just ₹14 short of its record high of ₹1,454.05 per share on the NSE. However, the stock experienced some selling pressure and fell to an intraday low of ₹1,349.95 per share before stabilizing around ₹1,380 apiece.

Key Financials

• Total revenue for Q1 2024 was ₹505 crore, a 7 percent increase from ₹471 crore in Q1 2023.
• EBITDA was ₹38 crore, up 52 percent from ₹25 crore in Q1 2023.
• EBITDA margin doubled to 8 percent compared to the previous quarter.
• PAT (Profit After Tax) for Q1 2024 stood at ₹25 crore, a 60 percent increase from ₹16 crore in Q1 2023.

Management’s Comments

Santosh Kataria, Managing Director of DP Abhushan, expressed satisfaction with the Q1 results. He highlighted the healthy revenue growth of 7 percent and the significant 60 percent increase in profits. He noted that the Bhopal store was a major revenue driver, achieving 18 percent YoY growth, with Ujjain and Indore stores also showing strong performances with 17 percent and 12 percent growth rates, respectively.

Future Outlook

Kataria shared an optimistic outlook, mentioning plans to expand operations in Madhya Pradesh, Rajasthan, Chhattisgarh, and Gujarat. The company aims to increase the share of diamond-studded jewellery from the current 6 percent by offering high-quality items, especially for weddings. This strategy is expected to enhance gross margins by allowing the company to command premium making charges.

Stock Performance History

In the past month, DP Abhushan share price has risen by 15 percent. Over the last six months, it has delivered a 100 percent return to shareholders. In one year, the stock has soared from ₹271.40 to ₹1380 per share, marking an impressive rise of over 400 percent.