Multibagger penny stock at Rs 42 with 1,800 per cent returns: This micro-cap company imports new high-tech machinery worth Rs 1 crore to boost production and enter new markets

The stock is up by 51 per cent from its 52-week low of Rs 27.72 and gave multibagger returns of over 1,800 per cent in 5 years.

Sprayking Limited, formerly known as Sprayking Agro Equipment Limited, is making a major stride towards becoming a dominant force in the forging product industry. The company has announced a strategic investment of approximately Rs 10 million in new, state-of-the-art machinery imported from China. This is a pivotal step in their expansion plans and signifies a strong commitment to delivering superior-quality products.

This new machinery boasts significant advancements in automation and technology. It is poised to revolutionize Sprayking Limited's production capabilities by increasing its daily output to an impressive 8,000 pieces. This substantial rise in production capacity will allow them to compete more effectively, particularly against established Chinese brands. The automation will not only boost production efficiency but also ensure a higher level of quality control in the forging process. With the successful completion of the trial phase, installation is expected to be finalized within a month.

This swift implementation will enable Sprayking Limited to rapidly scale up its manufacturing and meet the growing market demand for forging products. The company is confident that this investment will not only sharpen its competitive edge but also significantly contribute to its overall growth and success. Sprayking Limited will keep stakeholders informed of the operational status and anticipated market impact as the installation progresses.

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Earlier, the shares of the company ex-traded stock split of equity shares in the ratio 2:1 i.e., sub-division /split of each equity share having a face value of Rs 10 each, fully paid-up into 5 equity shares having a face value of Rs 2 each fully paid-up. The record date for the stock split was Friday, April 12, 2024.  

Sprayking Ltd, founded in 1980, is a manufacturer of various brass components and parts, including fittings, equipment for forging, transformer parts, and custom-made brass items. They also produce copper forgings, agricultural sprayer parts, garden fittings, and more, and export their products to countries around the world.

The company has a market cap of over Rs 200 crore.

On Tuesday, shares of Sprayking Ltd gained 1.62 per cent to an intraday high of Rs 41.88 per share from its previous closing of Rs 41.21. The stock’s 52-week high is Rs 60.04 and its 52-week low is Rs 27.72. The stock is up by 51 per cent from its 52-week low of Rs 27.72 and gave multibagger returns of over 1,800 per cent in 5 years. Investors should keep an eye on this micro-cap stock.

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