Strategic Expansion: Multibagger Engineering Company Acquired 51 Per Cent Stake of Vartis Engineering Pvt Ltd
The company's 1-year return stands at 200 per cent. The Price-Earnings (PE) Ratio is 178.86.
Following its board meeting, Captain Technocast Ltd made important announcements. The Board of Directors of the Company accepted the resignation of Mr. Nishant Goswami, Company Secretary, from the close of business hours on March 31, 2025. The company made a strategic decision to buy 4,10,000 equity shares of Vartis Engineering Pvt Ltd at Rs. 40 per share for the acquisition of up to 51 per cent of Vartis Engineering Pvt Ltd.
Through this acquisition, Vartis Engineering Pvt Ltd becomes a subsidiary of Captain Technocast Ltd. The engineering firm Vartis Engineering, situated in Rajkot, Gujarat, reported revenue of Rs. 7.56 crore during the financial year ending March 31, 2024. This acquisition does not fall under the related party transaction category and will be made through cash consideration. The acquisition directly supports Captain Technocast Ltd's growth plans by strengthening its engineering sector capabilities.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
Captain Technocast Ltd was established in 2010 and its main activities include the manufacturing and sale of investment castings of carbon steel, alloy steel, super alloy steel and nonferrous materials. The company produces industrial valve parts, pump parts, general engineering components, and machined components with CNC and VMC machining capabilities. The company has two subsidiaries, Captain Metcast Pvt Ltd and X2 Valves Pvt Ltd, which manufacture aluminium pressure die castings and industrial valves, respectively. The company has a production facility in Rajkot, Gujarat, covering an area of 1,90,000 sq. ft. with an annual production capacity of 2,400 MT.
The company earns 70.90 per cent of its revenue domestically and 29.10 per cent from exports and serves clients in more than eight countries, including the US and Europe. The company is in the process of increasing its production capacity and adding new advanced machining facilities to its operations to improve its value-added services. It also plans to set up X2 Valves Private Limited for the production of industrial valves, with the plan to produce 3000 valves per month. The market capitalization of the company stands at Rs 665 crore. The company's 1-year return stands at 200 per cent. The Price-Earnings (PE) Ratio is 178.86.
Disclaimer: The article is for informational purposes only and not investment advice.