Buzzing stock: Up 20% in a day; should this small-cap multibagger be in your portfolio?

Shares of Hind Rectifiers Ltd. surged 20 per cent on Tuesday, July 29, hitting the upper circuit limit at Rs 1,712.20 following strong financial results for the first quarter of FY26 and the announcement of a fundraising initiative through the issuance of convertible equity warrants to promoters.

Hind Rectifiers Q1FY26 Results Highlights

The company posted a 58.5 per cent year-on-year increase in revenue, reaching Rs 214 crore for the quarter. The growth was accompanied by a 69 per cent jump in EBITDA, which amounted to Rs 24.3 crore. The EBITDA margin also expanded by 70 basis points to 11.3 per cent from 10.6 per cent in the same period last year. Additionally, net profit surged by 81.4 per cent YoY, standing at Rs 12.7 crore.

As part of its capital raising efforts, Hind Rectifiers announced it will issue up to 2 lakh fully convertible equity warrants at an issue price of Rs 1,368.23 per share to Elventive Tech Pvt. Ltd., a promoter-related entity. These warrants will be convertible into one equity share each, with 25 per cent of the total consideration payable at the time of application, and the remaining balance to be paid upon conversion.

At the end of the June quarter, promoters held a 43.98 per cent stake in Hind Rectifiers Ltd. This capital raise further solidifies their confidence in the company’s future prospects.

Hind Rectifiers shares today

With today’s sharp rally, Hind Rectifiers’ stock has now turned positive on a year-to-date basis, giving investors renewed optimism. The stock has gained significant attention, making it one of the top movers in today’s session.