2:1 bonus shares; 10:1 stock split & promoters bought shares 82,50,000 shares: Multibagger penny stock at Rs 18.45; Expands East African Network with uPVC Pipes and Micro Irrigation at Agritech Africa

The stock gave multibagger returns of 550 per cent in just 2 years and a whopping 2,230 per cent in 5 years.

On Friday, shares of Captain Pipes Ltd gained 0.93 per cent to Rs 18.40 per share from its previous closing of Rs 18.23. The stock’s 52-week high is Rs 32.44 and its 52-week low is Rs 14.10.

The company has participated in the Agritech Africa 2024 exhibition in Nairobi, Kenya. The exhibition provides an opportunity to expand our existing network in the East African region by showcasing our extensive range of products for agriculture such as uPVC column pipes along with precision micro-irrigation solutions from group company Captain Polyplast Limited.

Captain Pipes Limited, a leading manufacturer of PVC pipes and fittings since 2010, offers a wide range of agricultural and plumbing solutions under the leadership of a highly experienced team. Their commitment to quality, innovation, and customer satisfaction has positioned them as a prominent brand with a robust distribution network across India and international markets.

Earlier, the company announced a significant expansion with a new greenfield plant near Ahmedabad. This Rs 25 crore investment will double the company's total production capacity to 20,000 MT. Construction is already underway and commercial production is expected to begin before the end of 2024. The company has secured the land for the plant and will finance the project through a combination of internal funds and bank loans. This new plant signifies the company's commitment to growth and strengthening its market position while remaining focused on operational efficiency and capitalizing on future opportunities to deliver value to stakeholders.

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The company's financial statements show a mixed performance with a decline in revenue but strong growth in profitability. Revenue from operations decreased 4.5 per cent from Q4FY23 (Rs 2,123 lakh) to Q4 FY24 (Rs 2,026 lakh) and fell 10.7 per cent annually (FY23: Rs 8,550 lakh vs. FY24: Rs 7,635 lakh). However, EBITDA painted a brighter picture, rising 19.1 per cent in Q4 (Rs 173 lakh to Rs 206 lakh) and surging 93 per cent year-over-year (FY23: Rs 398 lakh vs. FY24: Rs 768 lakh). This translated to a significant expansion in EBITDA margin, growing by 203 basis points to 10.18 per cent in Q4 and by 541 basis points to 10.06 per cent for the full year. Profitability followed suit, with profit before tax (PBT) increasing 9.3 per cent in Q4 (Rs 131 lakh to Rs 143 lakh) and a dramatic 123 per cent annual jump (FY23: Rs 247 lakh vs. FY24: Rs 550 lakh). Profit after tax (PAT) saw a slight decline in Q4 (down 4.2 per cent from Rs 94 lakh to Rs 90 lakh) but still managed a substantial 121 per cent annual increase (FY23: Rs 179 lakh vs. FY24: Rs 398 lakh). This suggests the company is becoming more efficient and profitable despite initial revenue challenges.

The company has a market cap of Rs 271 crore. The shares of the company ex-traded bonus shares in the ratio of 2:1 and stock split from a face value of Rs 10 to a face value of Rs 1 on March 03, 2023. The promoters of the company bought 82,50,000 shares and increased their stake to 73.78 per cent in March 2024 compared to 72.23 per cent in March 2023. The stock gave multibagger returns of 550 per cent in just 2 years and a whopping 2,230 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.