1:1 Bonus Share & 25 Per Cent Dividend: Back-to-back 52-week high in this multibagger engineering stock post stellar quarterly results; PAT jumps over 100 per cent
The stock gave multibagger returns of 625 per cent in just 1 year, 1,000 per cent in 3 years and a whopping 4,470 per cent in a decade.
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.
According to consolidated Quarterly Results, the net sales increased by 63 per cent to Rs 50.87 crore, operating profit increased by 98 per cent to Rs 8.20 crore and net profit skyrocketed by 117.2 per cent to Rs 5.34 crore in Q1FY25 compared to Q1FY24. 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 Board of Directors of the company Considered, approved and recommended the issue of bonus equity shares in the ratio of 1:1 i.e. 1 new fully paid equity share for every 1 existing equity share held and recommended a final dividend of 25 per cent i.e., Rs. 0.25 per equity share having face value of Rs 1 (pre-bonus) for the financial year ended March 31, 2024. The record date for bonus shares and dividend is yet to be announced.
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On Tuesday, shares of Rajoo Engineering jumped 4.63 per share to Rs 369.40 per share from its previous closing of Rs 353.05 with an intraday high of Rs 370 and an intraday low of Rs 355.20. The stock also made a new 52-week high of Rs 370 per share while its 52-week low is Rs 46.25 per share. In the recent trading sessions, the stock has been hitting back-to-back 52-week highs.
The company has a market cap of Rs 2,272 crore and it is almost debt-free as its current debt is just 1.67 crore which is just 0.08 per cent of its market cap. The stock gave multibagger returns of 625 per cent in just 1 year, 1,000 per cent in 3 years and a whopping 4,470 per cent in a decade. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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