2:1 Stock Split After 1:1 Bonus Share: Multibagger Solar Pump Manufacturer Stock With 800 Per Cent Returns To Keep Under Radar
The stock gave multibagger returns of 240 per cent returns in 3 years and a whopping 800 per cent in 5 years.
On Tuesday, shares of Roto Pumps Ltd plunged 1.16 per cent to Rs 561.30 with an intraday high of Rs 572 and an intraday low of Rs 557.25 from its previous closing of Rs 567.90. From a 52-week low (Rs 300.45) to Rs 561.30, the stock is up by 87 per cent.
The company's Board of Directors has proposed to reduce the face value of each equity share from the current Rs 2 to Re 1. This means that each existing share will be divided into two new shares, each with a face value of Rs 1 as of the record date (which will be announced in due course). Earlier, the shares of the company ex-traded bonus shares in a 1:1 ratio which had an ex-record date of July 07, 2023.
The company has also secured an international contract valued at USD 14,16,444 (approximately Rs 11.89 crore) from Ali and Sons Oilfield Equipment Manufacturing - Sole Proprietorship L.L.C. UAE, through its wholly owned subsidiary, Roto Pumps Mena FZE in Dubai. This contract involves the designing, engineering and supply of Progressive Cavity Pumps, along with supervision support. The pumps will be delivered in the second quarter of the next financial year. While the contract is with an international entity, it falls under related party transactions due to the involvement of Roto Pumps Mena FZE, a wholly-owned subsidiary.
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Roto Pumps is a well-known company that provides efficient and reliable pumping solutions to a variety of industries like marine & defence, wastewater, renewable energy, mining, etc. The company exports to over 50 countries. Talking about the finances, the company is a Small-Cap having a market cap of over Rs 1,760 crore and reported positive numbers in its Quarterly Results (Q1FY25) and annual results (FY24).
The company's shares have an ROE of 22 per cent and an ROCE of 24 per cent. The stock gave multibagger returns of 240 per cent returns in 3 years and a whopping 800 per cent in 5 years. Investors should keep an eye on this multibagger solar pump manufacturing company’s stock.
Disclaimer: The article is for informational purposes only and not investment advice.