1:1 Bonus Shares & Dividends Announced by This Multibagger Engineering Company; Stock Gains Over 650 Per cent in Just One Year!

The company’s shares have delivered impressive multibagger returns of over 850 per cent in just 3 years.

Rajoo Engineers Limited, established in 1986 and led by Mr. C.N. Doshi and Mr. R.N. Doshi, specializes in manufacturing plastic-extrusion machinery in Gujarat. The company designs and produces customized machines tailored to the specific requirements of its customers.

Following a meeting held on June 28, 2024, at its registered office, the Board of Directors of the company made the following decisions:

• Approved recommending an increase in the authorized share capital from Rs. 7,70,00,000 (divided into 7,70,00,000 Equity Shares of Rs. 1 each) to Rs. 15,00,00,000 (divided into 15,00,00,000 Equity Shares of Rs. 1 each), pending approval by the shareholders through Postal Ballot.
• Approved recommending the issuance of bonus shares in the ratio of 1:1, i.e., 1 new fully paid Equity Share for every existing Equity Share held as of the Record Date by the shareholder, subject to approval by the shareholders through Postal Ballot.
• The Board of Directors has recommended a final dividend of 25 per cent, amounting to Rs. 0.25 per equity share with a face value of Rs. 1.00 (pre-bonus), for the financial year ending March 31, 2024. This recommendation is subject to the shareholders' approval at the Company's upcoming Annual General Meeting (AGM). It is important to note that the aforementioned final equity dividend of Rs. 0.25 per equity share (pre-bonus), which equates to Rs. 0.125 per equity share (post-bonus) for the Financial Year 2023-24, is contingent upon approval by the shareholders. The dividend will be disbursed within 30 days from the date of declaration at the ensuing AGM.

Share Performance:

Today Rajoo Engineers Limited shares closed the day at Rs 317.40 per share. The company’s current market capitalization stands at Rs 1952.16 crore. The stock has delivered a multibagger return of over 650 per cent in just 1 year only.

Financial performance:

According to the Quarterly Results, in Q4 FY24, Rajoo Engineers Limited reported a revenue of Rs 52.68 crore and an operating profit of Rs 8.96 crore. The operating profit margin for the quarter stands at 17.01 per cent. The company’s net profit stood at Rs 6.25 crore. In FY24, the company reported a revenue of Rs 197 crore compared to Rs 160 crore and a net profit of Rs 20 crore, compared to Rs 10 crore in the previous year.

Investors must keep this Small-Cap stock on their radar.

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