Upper Circuit Alert: Heavy buying witnessed in this multibagger micro-cap stock; announces stock split & FIIs increasing stake!

The stock gave multibagger returns of 460 per cent in just 1 year and a whopping 960 per cent in 3 years.

Indian markets soared to new highs, with the Sensex crossing 70,000 and the Nifty breaching 21,000 for the first time. Both benchmark indices traded firmly in the green, reflecting positive investor sentiment.

Along with the market in green, one of the Top Gainers on BSE, shares of OK Play India Ltd were locked in a 5 per cent upper circuit to Rs 172.95 per share from its previous closing of Rs 165.2. The stock has been hitting back-to-back upper circuits in the recent trading sessions. The shares of the company saw a spurt in volume by more than 1.50 times on BSE.

OK Play India Limited successfully raised Rs 30,93,75,000 through a preferential issue of warrants. This round was led by Saint Capital Fund (a FII), along with 15 other investors. Notably, Saint Capital Fund received an allocation of 5,00,000 shares, representing a significant Rs 6.25 crore investment.

In a significant development, OK Play India has joined forces with MANN+HUMMEL, a global leader in filtration technology, to tackle India's air pollution crisis. This strategic partnership aims to improve air quality and benefit the health of millions of people through the distribution and installation of MANN+HUMMEL's cutting-edge Pure Air Mobile Fine Dust Particle Filter Roof Box. This innovative solution helps combat air pollution by capturing harmful fine dust particles from the air before they enter enclosed spaces. The filter's effectiveness is expected to significantly improve indoor air quality, particularly in areas with high levels of air pollution.

Additionally, OK Play India's Board of Directors has approved the sub-division/split of the company's equity shares. This will involve dividing each existing equity share of Rs 10 into 10 equity shares of Rs 1 each. The company has not yet announced the record date for the stock split.

OK Play India boasts a market cap exceeding Rs 450 crore and has exhibited a remarkable financial turnaround in recent quarters. In Q1FY24, the company reversed its fortunes, reporting a net profit of Rs 0.42 crore compared to a net loss of Rs 1.42 crore in the same period last year. This turnaround was further solidified in H1FY24, with a net profit of Rs 0.78 crore compared to a loss of Rs 4.42 crore in the previous year.

The company's financial health is further bolstered by a 0.55 per cent increase in net sales to Rs 40.31 crore in Q1FY24 and a 3 per cent increase to Rs 83.56 crore in H1FY24, showcasing strong revenue growth. These positive financial results demonstrate OK Play India's successful turnaround strategy and position the company for continued growth and profitability.

OK Play India Ltd is a leading manufacturer of plastic moulded products in India, with two business segments: Toys and Automotive Components. The company's products are exported to over 60 countries around the world, and OK Play is a major player in the Indian toy industry. In the September quarter 2023, FIIs have increased their stakes from 13.51 per cent to 19.64 per cent.

The stock gave multibagger returns of 460 per cent in just 1 year and a whopping 960 per cent in 3 years. Investors should keep an eye on this micro-cap stock.

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