Dolly Khanna portfolio: On account of strong quarterly numbers and Crompton Greaves acquiring controlling stake in the company, Butterfly Gandhimathi Appliances share price has climbed near to its life-time high of ₹1,419.50 apiece. This Dolly Khanna share today opened with an upside gap of near ₹12 per share and went on to ascend to its life time high in early morning deals. According to stock market experts, this rise in this Dolly Khanna shares' price can be attributed to two major reasons — Crompton Greaves acquiring controlling stake in the company and strong quarterly results reported by the company in last 3 quarters. They said that the multibagger stock is still in 'uptrend' and it may go up to ₹1650 per share levels in next 3 months.
Highlighting the reasons for this multibagger stock climbing to its life time high; Ravi Singhal, Vice Chairman at GCL Securities said, "Short term reason for rise in Butterfly Gandhimathi sahre price is Crompton Greaves acquiring controlling stake in the company whereas long-term reason for rise in this stock is its strong quarterly numbers in last 3 quarters."
On how Crompron Greaves acquiring controlling share in the company would benefit Butterfly Gandhimathi, Ravi Singhal of GCL Securities said, "Crompron Greaves is a bigger company with better corporate governance track record. After the news of Crompron Greaves acquiring stake in the company, market is abuzz that now Butterfly Gandhimathi management would be in the hands of those people who are more adept in corporate governance. So, the company, which is already delivering better quarterly numbers is expected to give better numbers in upcoming quarters."
Advising positional investors to add this Dolly Khanna stock in their portfolio; Sumeet Bagadia, Executive Director at Choice Broking said, "Though the stock has hit its life time high, it is still in uptrend and one can buy this stock at current levels for immediate short term target of ₹1500 maintaining stop loss at ₹1320 apiece levels." He said that those who hold the counter should further hold the counter maintaining trailing stop loss at ₹1320 levels.
Suggesting fresh investors to buy the counter for long term; Ravi Singhal of GCL Securities said, "One can buy the counter at current levels and keep on accumulating till it is above ₹1300. One should hold the stock for at least 3-month target of ₹1600 to ₹1650 maintaining deep stop loss at ₹1250 apiece levels."
Today BSE Exchange informed about Crompton Greaves acquiring controlling stake in Butterfly Gandhimathi sharing press release shared by Crompron.
Crompron Greaves announced in this release, "Crompton Greaves Consumer Electricals Ltd. ("Crompton") has signed definitive agreements on February 22, 2022 with certain members of the promoter group of Butterfly Gandhimathi Appliances Ltd. ("Butterfly") to acquire (a) up to 55% stake at INR 1,403.00 per equity share, aggregating up to INR 1,379.68 cr, and (b) certain Butterfly trademarks in allied and cognate classes from promoter group entities ("Trademarks") for a consideration of INR 30.38 cr. Crompton will launch the mandatory open offer to the public shareholders of Butterfly, for acquiring up to 26% stake in Butterfly at a price of INR 1,433.90 per equity share, aggregating up to INR 666.57 cr; for an aggregate total consideration of up to INR 2,076.63 cr."
Butterfly Gandhimathi Appliances shares are one of the multibagger stocks in 2021 as it has surged from ₹566.40 to ₹1419.50 apiece levels, logging near 150 per cent rise in this period.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
