Debt-Free Penny Stock Under Rs 10 with PE of 0.10x and ROE of 44 Per cent, ROCE of 32.8 Per cent Reports Stellar Results; Profits Surged by 58 Per cent in Q1 FY25!
The company’s shares have delivered a multibagger returns of over 140 per cent in just 1 year.
This microcap company, incorporated in 1969 in collaboration with a Swedish company, provides solutions for hand tool requirements.
The company has announced its Quarterly Results for Q1 FY25, highlighting a strong performance by Taparia Tools Ltd. The company reported a revenue of Rs 211 crore for the quarter, compared to Rs 191 crore in the same period last year, representing a growth of 10.35 per cent.
The operating profit saw a significant rise, expanding from Rs 24 crore to Rs 38 crore, which corresponds to an impressive improvement in the operating profit margin, reaching 18 per cent. This margin expansion indicates enhanced operational efficiency and cost management.
Net profit also experienced a substantial increase, climbing to Rs 30 crore from Rs 19 crore in the previous year’s quarter. This represents a remarkable 58 per cent surge in net profit year-on-year, reflecting the company’s strong financial performance and effective profitability strategies.
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Looking at the annual performance, Taparia Tools Ltd generated a total revenue of Rs 829 crore for FY24. The operating profit for the fiscal year was Rs 126 crore, and the net profit stood at Rs 100 crore. This is a significant improvement compared to FY23 when the net profit was Rs 72 crore.
Furthermore, the company is nearly debt-free and has consistently distributed dividends to its shareholders over the past four years. In FY24, the company distributed Rs 40 per share. It has been maintaining a healthy dividend payout ratio of 68.9 per cent, providing a substantial dividend yield of 609 per cent. In the year 2023, the company announced and distributed bonus shares in the ratio of 4:1.
On Wednesday, the shares of Taparia Tools closed at around Rs 6.57 per share on the BSE. The company’s current market capitalization stands at Rs 9.97 crore. Additionally, the company’s shares have delivered a multibagger return of over 140 per cent in just 1 year.
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Investors must keep this micro-cap company on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.
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