Multibagger penny stock at Rs 13.50: This toys manufacturing company expands its private label and contract manufacturing portfolio; details inside

From Rs 2.16 to Rs 13.50 per share, the stock gave multibagger returns of 525 per cent in 3 years.

Today, shares of OK Play India Ltd gained 1.35 per cent to Rs 13.50 per share from its previous closing of Rs 13.32. The stock is up by 40 per cent from its 52-week low of Rs 9.70 per share.

OK Play India Ltd., a well-established player in the plastic moulding and toy manufacturing industry, has expanded its services to cater to a wider range of clients. They now offer private label and contract manufacturing solutions to renowned brands, further solidifying their position as a leader in the field.

Building Strong Brand Partnerships: At OK Play, they understand the importance of brand reputation. They take pride in partnering with leading names across various product segments. Their clientele includes major e-commerce platforms like Amazon, Flipkart, and Myntra, along with established toy stores like Hamleys and First Cry. These partnerships showcase OK Play's ability to consistently deliver high-quality and safe products that meet the strictest safety and durability standards.

Unmatched Private Label and Contract Manufacturing Expertise: OK Play boasts a prestigious list of clients for their private label services, including global giants like Amazon and Kmart. Their contract manufacturing capabilities offer end-to-end solutions, encompassing everything from initial product design to mass production. They specialize in customized product development, high-precision plastic moulding, stringent quality control processes, and timely delivery with scalable production volumes. By leveraging cutting-edge facilities and industry experience, OK Play ensures each product is meticulously crafted to reflect the unique brand identity and quality standards of their clients. This comprehensive approach empowers them to cater to diverse client needs and expand their market reach.

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OK Play India boasts a market cap of Rs 390 crore. OK Play India Ltd is a leading manufacturer of plastic moulded products in India, with two business segments: Toys and Automotive Components. The company's products are exported to over 60 countries worldwide, and OK Play is a major player in the Indian toy industry.

Standalone Results - The company's financial performance for FY24 showed significant improvement both in quarterly and annual results. In Q4FY24, net sales climbed 22.6 per cent to Rs 48.38 crore, compared to Q4FY23, and net profit achieved a remarkable turnaround, surging 185.9 per cent to Rs 4.26 crore, reversing a net loss of Rs 4.96 crore in the previous year's corresponding quarter. Looking at the annual results, the positive trend continued, with net sales for FY24 reaching Rs 145.08 crore, reflecting a 9.2 per cent increase over FY23. Net profit also substantially improved, rising by 257.2 per cent to Rs 5.74 crore compared to a net loss of Rs 3.90 crore in FY23.

Consolidated Results - Looking at the company's financial performance, there was a positive trend in both quarterly and annual results. In Q4FY24, net sales increased by 12.8 per cent to Rs 60.08 crore compared to Rs 42.63 crore in Q4FY23. There was also a slight improvement in net loss, going from Rs 2.03 crore in Q4FY23 to Rs 0.71 crore in Q4FY24. For the annual results, net sales increased by 1.2 per cent to Rs 184.56 crore in FY24 compared to Rs 182.39 crore in FY23. Even more encouraging, the company turned a net loss of Rs 1.96 crore in FY23 into a net profit of Rs 1.13 crore in FY24, reflecting a significant 157.8 per cent increase.

Earlier, the shares of the company ex-traded stock split of equity, such that 1 equity share having a face value of Rs 10 each, fully paid-up, will be sub-divided into 10 equity shares having a face value of Rs 1 each, fully paid-up, ranking pari-passu in all respects. The ex-date for the stock split was Monday, March 11, 2024. From Rs 2.16 to Rs 13.50 per share, the stock gave multibagger returns of 525 per cent in 3 years.

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