Penny Stock Under Rs 20 Hit Upper Circuit After This Toy Manufacturer Completes Capacity Addition As Part of Business Expansion
From Rs 2.89 to Rs 17.51 per share, the stock gave multibagger returns of over 500 per cent in 3 years and a whopping 942 per cent in 5 years.
On Wednesday, shares of OK Play India Ltd hit a 5 per cent upper circuit to Rs 17.51 per share from its previous closing of Rs 16.68 per share. The stock is up by 65 per cent from its 52-week low of Rs 10.62 per share.
OK Play India Limited has successfully completed the expansion of its Roz Ka Meo, Haryana plant, significantly boosting its production capacity. This expansion, involving an investment of approximately Rs 46 crore, includes new machinery, equipment, and moulds, enabling the plant to produce over 300 per cent more toys, playground equipment, and children's furniture. With existing capacity utilization at approximately 80 per cent of the initial 300 MT per month, the added 900 MT per month will significantly enhance the company's ability to meet the growing market demand and enhance its operational efficiency. The expansion project is intended to address the growing demand in the sector of toys, playground equipment, and children's furniture. The implementation of the project started in July 2024 and has now been completed. The total investment for the project is approximately Rs 46 crore with 75 per cent of the cost financed by Indian Overseas Bank.
Furthermore, OK Play has expanded its business offerings to include private label and contract manufacturing. This strategic move allows the company to partner with leading brands like Amazon, Flipkart, and Myntra, solidifying its position as a key player in the industry. By prioritizing strong brand partnerships and maintaining a commitment to quality and safety, OK Play is poised for continued growth and success in the competitive market.
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Consolidated Results - The company reported net sales of Rs 37.94 crore in Q2FY25 compared to net sales of Rs 40.31 crore in Q2FY24. The company reported a net profit of Rs 0.28 crore in Q2FY2 compared to a net profit of Rs 0.41 crore in Q2FY24. In its half-yearly results, the net sales decreased by 7 per cent to Rs 77.75 crore while net profit increased by 50 per cent to Rs 1.15 crore in H1FY25 compared to H1FY24. According to annual results, the net sales increased by 1.2 per cent to Rs 184.56 crore in FY24 compared to FY23. The net profit increased by 157.8 per cent to Rs 1.13 crore in FY24 compared to a net loss of Rs 1.96 crore in FY23.
OK Play India Ltd. is poised for robust growth in Q4FY25, driven by significant investments in expanding production capacities, strategic partnerships with major retailers, and the successful commercialization of innovative products like "COMPTANK." The company's strong focus on quality, safety, and innovation, coupled with favourable industry dynamics, positions it well to capitalize on the growing domestic toy market. The anticipated increase in production and sales, along with the diversification into new product segments, is expected to drive substantial revenue and profitability growth in the coming years.
The promoters bought 4,80,00,000 shares and increased their stake to 53.86 per cent in October 2024 compared to 47.01 per cent in September 2024. From Rs 2.89 to Rs 17.51 per share, the stock gave multibagger returns of over 500 per cent in 3 years and a whopping 942 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.