A Jhunjhunwala, Damani favourite smallcap creating lot of buzz, up 38% in a month

NEW DELHI: If you are one of those investors trying to find out where the smart money is moving in order to identify the next big multibagger on Dalal Street, this could be one name to look at.

It’s a microcap stock valued at just Rs 330 crore. But it is owned by two of the biggest investors on Dalal Street – Rakesh Jhunjhunwala and Radhakishan Damani. And, the stock has delivered about 38 per cent return in the last one month.

The stock is Prozone Intu Properties, a Mumbai-based company that builds shopping centres and undertake associated mixed-use developments primarily in western and southern India.

Latest shareholding data showed Jhunjhunwala held 2.06 per cent in the company, which has remained unchanged for at least two years. Damani holds a 1.26 per cent for over a year now.

On Thursday, the stock gained 15 per cent to trade at Rs 23.55 on the Bombay Stock Exchange (BSE), taking one-month return to 38 per cent. It has risen 73 per cent from its 52-week low hit in July 2020, but still trades much below the 52-week high of Rs 28.55 hit in June last year.

The company website says Prozone Intu Properties has assets of over Rs 2,000 crore and more than 3 million square feet under development. It claims to be a debt-free company, a feat among the real estate industry peers.

Among its projects, the company counts malls in Aurangabad, Coimbatore and Nagpur; residential projects in Coimbatore, Indore, Nagpur and Jaipur; and commercial developments in Mysore, Aurangabad and Mumbai.

However, the financial performance of the company has not been up to the mark. Revenue for December quarter fell to Rs 2.12 crore from Rs 2.37 crore. For the nine months ending December, revenues fell to Rs 4.68 crore from Rs 7.12 crore year on year. Net profit fell 25 per cent in the December quarter to Rs 85 lakh while for the nine months, it halved to Rs 1.33 crore.

Since it is such a small company, there is hardly any analyst coverage of the stock.