Record Date Announced For 1:3 Bonus Share & Rs 140 Crore Order Book: Multibagger Engineering Stock Hit 5 Per Cent Upper Circuit On November 19
The stock gave multibagger returns of 445 per cent in just 1 year, 3,260 per cent in 3 years and a whopping 6,475 per cent in a decade.
On Tuesday, shares of Rajoo Engineering hit 5 per share upper circuit to Rs 393.85 per share from its previous closing of Rs 375.10 per share. The stock’s 52-week high is Rs 443.90 per share while its 52-week low is Rs 73.95 per share.
The Board of Directors considered, approved, and recommended the issuance of bonus equity shares in a ratio of 1:3, meaning one new fully paid equity share would be issued for every three existing equity shares held on the record date. Additionally, the Board proposed an increase in the company's authorized share capital from Rs 15 crore to Rs 18 crore, divided into 18 crore equity shares of Re 1 each. The Board fixed the record date for bonus shares as Monday, December 02, 2024.
Rajoo Engineers Limited has also invested Rs 30 crore to upgrade its "Yantralaya" machine shop with advanced 5-axis vertical multitasking machinery from Japan. This strategic move aims to increase production capacity by 40 per cent, enhance precision, and streamline operations. By adopting state-of-the-art technology, Rajoo Engineers Ltd seeks to meet the growing global demand for high-quality extrusion machinery while adhering to Total Quality Management (TQM) standards. This modernization will reduce manual intervention, leading to a more efficient and reliable production process.
About the Company
Rajoo Engineers Ltd, founded in 1986 by C.N. Doshi and R.N. Doshi in Gujarat, designs and manufactures plastic extrusion machinery like blown film lines and lamination lines. They also cater to specific client needs with customized solutions. Notably, Rajoo Engineers Ltd established Asia's first R&D center dedicated to their customers, allowing them to test-run products and develop fully customized solutions. This focus on innovation has led them to create extrusion coating and lamination machines, a more efficient alternative to traditional adhesive lamination for various packaging applications.
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According to consolidated Quarterly Results, the net sales increased by 6.1 per cent to Rs 56.81 crore, operating profit increased by 27.5 per cent to Rs 9.14 crore and net profit increased by 47.7 per cent to Rs 7.93 crore in Q2FY25 compared to Q2FY24. In its annual results, the net sales increased by 23.5 per cent to Rs 197.35 crore, operating profit increased by 42.4 per cent to Rs 30.62 crore and net profit skyrocketed by 96.8 per cent to Rs 19.71 crore in FY24 over FY23.
The company has a market cap of over Rs 4,800 crore and as of June 2024, the company boasts an order book of Rs 140 crore. The stock gave multibagger returns of 445 per cent in just 1 year, 3,260 per cent in 3 years and a whopping 6,475 per cent in a decade. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.