2:1 stock split: Multibagger solar pump manufacturer bags order worth Rs 11.89 crore from Ali & Sons Oilfield Equipment Manufacturing
The stock gave multibagger returns of 380 per cent returns in 3 years and a whopping 1,380 per cent in a decade.
On Wednesday, shares of Roto Pumps Ltd gained 8.63 per cent to an intraday high of Rs 624.25 per share from its previous closing of Rs 574.65 with a spurt in volume by more than 2.93 times on BSE. From a 52-week low (Rs 300.45) to Rs 624.25, the stock gave multibagger returns of over 100 per cent.
Roto Pumps Ltd. has secured an international contract valued at USD 14,16,444 (approximately Rs 11.89 crore) from Ali and Sons Oilfield Equipment Manufacturing - Sole Proprietorship L.L.C. UAE, through its wholly owned subsidiary, Roto Pumps Mena FZE in Dubai. This contract involves the designing, engineering and supply of Progressive Cavity Pumps, along with supervision support. The pumps will be delivered in the second quarter of the next financial year. While the contract is with an international entity, it falls under related party transactions due to the involvement of Roto Pumps Mena FZE, a wholly-owned subsidiary. The promoter, promoter group, or group companies have no direct interest in Ali and Sons Oilfield Equipment Manufacturing.
Roto Pumps is a well-known company that provides efficient and reliable pumping solutions to a variety of industries like marine & defence, wastewater, renewable energy, mining, etc. The company exports to over 50 countries. Talking about the finances, the company is a Small-Cap having a market cap of over Rs 1,800 crore and reported positive numbers in its Quarterly Results (Q1FY25) and annual results (FY24).
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The company's Board of Directors has proposed to reduce the face value of each equity share from the current Rs 2 to Re 1. This means that each existing share will be divided into two new shares, each with a face value of Rs 1 as of the record date (which will be announced in due course). Earlier, the shares of the company ex-traded bonus shares in a 1:1 ratio which had an ex-record date of July 07, 2023.
The company's shares have an ROE of 22 per cent and an ROCE of 24 per cent. The stock gave multibagger returns of 380 per cent returns in 3 years and a whopping 1,380 per cent in a decade. Investors should keep an eye on this multibagger solar pump manufacturing company’s stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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