Sunil Singhania's Abakkus Funds Invests in Two Promising Recently Listed Companies

Sunil Singhania, founder of Abakkus Funds and a noted investor in midcap and smallcap stocks, has acquired stakes in two recently listed companies. Abakkus Funds bought a 2.9% stake in Mangalam Electricals Ltd for approximately Rs 37.3 crore and a 2.3% stake in Jaro Institute of Technology Management and Research Ltd for about Rs 31 crore.

Mangalam Electricals Ltd, a transformer component manufacturer, shows strong financial growth. Sales have grown 36% annually over three years, EBITDA by 42% over five years, and net profits by 98% annually over three years. Despite this, its share price is about 19% below its all-time high. The company’s ROCE of 30% is significantly higher than the industry median of 19%, indicating excellent capital efficiency.

Jaro Institute of Technology Management and Research Ltd, an online higher education platform, also demonstrates robust growth. Sales have grown 47% annually over three years, EBITDA by 93% over five years, and net profits by 105% annually over three years. Its share price is 32% below its peak, and its ROCE of 40% surpasses the industry median of 22%.

Impact: The investment by a prominent figure like Sunil Singhania often draws investor attention. Strong financial metrics combined with post-listing price corrections suggest potential value buys. Continued execution will determine future performance. These companies operate in manufacturing and education sectors.

Definitions: * EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Measures operating performance before non-operating expenses. * PE (Price-to-Earnings) Ratio: Compares share price to earnings per share, indicating valuation. * ROCE (Return on Capital Employed): Measures how efficiently a company uses capital to generate profits.

Impact rating: 7/10