1:3 Bonus Shares After 1:1 Bonus Share 2 Months Ago & Rs 140 Crore Order Book: Multibagger Engineering Stock With 7,500 Per Cent Returns To Keep Under The Radar
The stock gave multibagger returns of 720 per cent in just 1 year, 3,110 per cent in 3 years and a whopping 7,500 per cent in a decade.
On Monday, shares of Rajoo Engineering plunged 2.58 per share to Rs 391.30 per share from its previous closing of Rs 401.65 with an intraday high of Rs 414.40 and an intraday low of Rs 385. The stock’s 52-week high is Rs 443.90 per share while its 52-week low is Rs 47.83 per share.
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 6.1 per cent to Rs 56.81 crore, operating profit increased by 27.5 per cent to Rs 9.14 crore and net profit increased by 47.7 per cent to Rs 7.93 crore in Q2FY25 compared to Q2FY24. 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 considered, approved, and recommended the issuance of bonus equity shares in a ratio of 1:3, meaning one new fully paid equity share would be issued for every three existing equity shares held on the record date. This proposal is subject to shareholder approval through a postal ballot. Additionally, the Board proposed an increase in the company's authorized share capital from Rs 15 crore to Rs 18 crore, divided into 18 crore equity shares of Re 1 each. This amendment is also contingent upon shareholder approval via a postal ballot.
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Earlier, shares of the company ex-traded bonus equity shares in the ratio of 1:1 i.e. 1 new fully paid equity share for every 1 existing equity share held. The record date for bonus shares was Thursday, August 08, 2024.
The company has a market cap of over Rs 4,800 crore and as of June 2024, the company boasts an order book of Rs 140 crore. The stock gave multibagger returns of 720 per cent in just 1 year, 3,110 per cent in 3 years and a whopping 7,500 per cent in a decade. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.