1:1 bonus share & 5:1 stock split: Penny stock under Rs 20 to keep under radar as company bags export order worth Rs 2,50,00,000 from Dubai-based company

1:1 bonus share & 5:1 stock split: Penny stock under Rs 20 to keep under radar as company bags export order worth Rs 2,50,00,000 from Dubai-based company

Kiran Shroff

The stock gave multibagger returns of 600 per cent in 3 years and a whopping 1,000 per cent in 5 years.

Narmadesh Brass Industries Limited, a subsidiary of Sprayking Limited, has secured a significant export order valued at Rs 2.50 crore from a Dubai-based company. This order is for brass billets that will be shipped to China, one of the world's largest and fastest-growing markets. This strategic move highlights Sprayking's commitment to expanding its global footprint and meeting the increasing demand for high-quality brass components.

Narmadesh Brass Industries is recognized for its expertise in manufacturing precision brass components. The brass billets to be supplied under this order are meticulously designed and produced to meet stringent international standards. This underscores the company's dedication to quality and excellence, ensuring that its products meet the highest standards of the global market

Earlier, the company's shares ex-traded 1:1 bonus share issue, effectively a 100 per cent bonus, for its investors. The bonus shares became ex-tradeable on August 21, 2024. Additionally, the company underwent a 5:1 stock split, meaning each equity share with a face value of Rs 10 was divided into 5 equity shares with a face value of Rs 2 each. This stock split ex-traded on Friday, April 12, 2024.

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Sprayking Limited, formerly known as Sprayking Agro Equipment Limited, has rebranded to reflect its expanding business strategy and broader market aspirations. Established in 2005, the company specializes in manufacturing brass components and parts, including fittings, forging equipment, transformer parts, and customized brass components. With a global presence spanning the USA, Europe, Australia, Canada, South Africa, UAE, and India, Sprayking is committed to delivering high-quality products and exceptional service to its customers worldwide.

To drive growth and enhance its market position, Sprayking Limited has undertaken significant strategic initiatives. The company has acquired a new 3,000-square-meter manufacturing facility in Jamnagar, Gujarat, to expand its production capacity for brass and forging components. Additionally, Sprayking has acquired a majority stake in Narmada Brass Industries, a company with an annual production capacity of 2,000 tons of forged goods. These strategic moves position Sprayking for continued growth and success in the global market.

The company has a market cap of over Rs 130 crore.  According to Quarterly Results, the net sales increased by 119 per cent to Rs 35.81 crore and net profit increased by 126 per cent to Rs 2.35 crore in Q1FY25 compared to Q1FY24. The stock gave multibagger returns of 600 per cent in 3 years and a whopping 1,000 per cent in 5 years. Investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.

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