Promoters Bought 4,80,00,000 Shares: Multibagger Penny Stock Under Rs 20, Hit 10 Per Cent Upper Circuit on December 12

Promoters Bought 4,80,00,000 Shares: Multibagger Penny Stock Under Rs 20, Hit 10 Per Cent Upper Circuit on December 12

Kiran Shroff

From Rs 2.55 to Rs 14.45 per share, the stock gave multibagger returns of 466.67 per cent in 3 years.

On Thursday, shares of OK Play India Ltd hit a 10 per cent upper circuit to Rs 14.45 per share from its previous closing of Rs 13.14 with an intraday high of Rs 14.45 and an intraday low of Rs 13.16. The stock hit a 52-week low of Rs 10.62 per share and saw a spurt in volume by more than 3 times on BSE.

OK Play India Ltd., a leading plastic moulder and toy manufacturer, has expanded its services to include private label and contract manufacturing. This strategic move enables them to partner with top brands like Amazon, Flipkart, Myntra, Hamleys, and First Cry, solidifying their position as an industry leader. OK Play prioritizes strong brand partnerships and is committed to delivering high-quality, safe products that meet the strictest standards.

Consolidated Results - The company reported net sales of Rs 37.94 crore in Q2FY25 compared to net sales of Rs 40.31 crore in Q2FY24. The company reported a net profit of Rs 0.28 crore in Q2FY2 compared to a net profit of Rs 0.41 crore in Q2FY24. In its half-yearly results, the net sales decreased by 7 per cent to Rs 77.75 crore while net profit increased by 50 per cent to Rs 1.15 crore in H1FY25 compared to H1FY24. According to annual results, the net sales increased by 1.2 per cent to Rs 184.56 crore in FY24 compared to FY23. The net profit increased by 157.8 per cent to Rs 1.13 crore in FY24 compared to a net loss of Rs 1.96 crore in FY23.

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The company's significant investments in expanding production capacities are expected to yield results starting in Q4. Robust business growth is projected in Q4FY25, driven by a 40 per cent increase in production and sales. Strategic partnerships with major retailers will strengthen the market presence and potentially boost sales by 20 per cent. EBITDA margins have normalized. The anticipated growth in revenue and profitability from Q4FY25 is driven by strategic investments and partnerships, paving the way for long-term expansion and increased shareholder value.

The domestic toys industry is witnessing strong growth potential due to increased import duties and the implementation of the toy Quality Control Order (QCO). OK Play Auto, in collaboration with Floteks, Turkey, has successfully commercialized "COMPTANK," a revolutionary product expected to contribute 10 per cent to overall revenue in the next two years. The company plans to expand capacities by 4x to meet demand, with an envisaged capex of Rs 100 Crore. Additionally, OK Play plans to diversify into blow-moulded fuel tanks and non-automotive plastic components, aiming for a 25 per cent revenue contribution from these segments in the next five years.

The promoters bought 4,80,00,000 shares and increased their stake to 53.86 per cent in October 2024 compared to 47.01 per cent in September 2024. From Rs 2.55 to Rs 14.45 per share, the stock gave multibagger returns of 466.67 per cent in 3 years.

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

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