2:1 bonus shares; 10:1 stock split & promoters bought shares 82,50,000 shares: Multibagger penny stock under Rs 25 in green as PAT zooms over 120 per cent

The stock gave multibagger returns of 600 per cent in just 2 years and a whopping 1,900 per cent in 5 years.

On Wednesday, shares of Captain Pipes Ltd gained 4.93 per cent to Rs 20.22 per share from its previous closing of Rs 19.27. The stock’s 52-week high is Rs 35.79 and its 52-week low is Rs 14.10.

Captain Pipes Limited, a leading manufacturer of PVC pipes and fittings since 2010, offers a wide range of agricultural and plumbing solutions under the leadership of a highly experienced team. Their commitment to quality, innovation, and customer satisfaction has positioned them as a prominent brand with a robust distribution network across India and international markets.

The company has announced a significant expansion with a new greenfield plant near Ahmedabad. This Rs 25 crore investment will double the company's total production capacity to 20,000 MT. Construction is already underway and commercial production is expected to begin before the end of 2024. The company has secured the land for the plant and will finance the project through a combination of internal funds and bank loans. This new plant signifies the company's commitment to growth and strengthening its market position while remaining focused on operational efficiency and capitalizing on future opportunities to deliver value to stakeholders.

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The company's standalone financial statement highlights reveal a detailed overview of fiscal performance, emphasizing specific metrics for Q4FY24 compared to Q4FY23 and the annual figures for FY23 to FY24. Revenue from operations decreased by 4.5 per cent from 2,123 lakhs in Q4FY23 to 2,026 lakhs in Q4FY24, with a notable annual decline of 10.7 per cent from 8,550 lakhs in FY23 to 7,635 lakhs in FY24. Despite the revenue downturn, there was a marked improvement in EBITDA, which increased by 19.1 per cent to 206 lakhs in Q4FY24 from 173 lakhs in Q4FY23 and surged by 93 per cent annually from 398 lakhs in FY23 to 768 lakhs in FY24.

This resulted in a significant expansion in the EBITDA margin, growing by 203 basis points to 10.18 per cent in Q4FY24 and by 541 basis points to 10.06 per cent for the full year. The profit before tax (PBT) also grew, up 9.3 per cent from 131 lakhs in Q4FY23 to 143 lakhs in Q4FY24, and dramatically by 123 per cent annually from 247 lakhs in FY23 to 550 lakhs in FY24. Conversely, the profit after tax (PAT) decreased slightly by 4.2 per cent from 94 lakhs in Q4 FY23 to 90 lakhs in Q4FY24, although it experienced a substantial annual increase of 121 per cent from 179 lakhs in FY23 to 398 lakhs in FY24. This reveals significant improvements in profitability and efficiency despite the initial challenges in revenue generation.

The company has a market cap of Rs 291 crore. The shares of the company ex-traded bonus shares in the ratio of 2:1 and stock split from a face value of Rs 10 to a face value of Rs 1 on March 03, 2023. The promoters of the company bought 82,50,000 shares and increased their stake to 73.78 per cent in March 2024 compared to 72.23 per cent in March 2023. The stock gave multibagger returns of 600 per cent in just 2 years and a whopping 1,900 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.