Stocks that are considered quality stock and available at reasonable valuation are expected to do well in markets.Quality stocks can be ascertained by their improving financials in terms of sales growth, net profit growth by retaining healthy profit margins – consistently.
Rubfila International company, a rubber sector small cap company has seen some decent buying in the form of bulk deals and is catching investors’ attention on the bourses because of its price gains in 2021.The stock is up by nearly 58.26 per cent on YTD basis, in one month the stock is up by nearly 7 per cent in one month. In one year, the stock has churned out gains of nearly 207 per cent turning out to be a small cap multibagger belonging to the Rubber sector.The stock with a 52-week high of Rs 104 per share is trading at a low PE of 17 as per BSE data.
The company has declared positive results in the recent quarter with increasing sales, net profits and maintaining decent net profit margins at more than 11 per cent. The company is almost debt free and carries a ROE of slightly higher than 17. The company has been maintaining a healthy dividend pay-out of 30.18% while the promoter holding has increased by 1.45% over last quarter. The profits have grown by 30 per cent CAGR in the past five years for the company.
Rubfila International Limited (RIL) is a Public Listed Company promoted by Rubpro Sdn. Bhd., Malaysia along with Kerala State Industrial Development Corporation (KSIDC) and has been in operation since 1994. The company has been listed on Bombay Stock Exchange (BSE) since1994. Rubfila is the only Indian manufacturer to manufacture both Talcum Coated and Silicon Coated Rubber threads