Rs 7,34,16,000 land sale: This micro-cap stock is deleveraging, keep it on your radar!
Rasandik Engineering Industries Ltd, established in 1986, has recently executed a sale deed on September 27, 2023, for the disposal of its idle assets.
Rasandik Engineering Industries Ltd, established in 1986, has recently executed a sale deed on September 27, 2023, for the disposal of its idle assets. The company, which specializes in manufacturing critical engineering components for various industries, including automobiles and household goods, sold an industrial plot situated at Site-B, Surajpur Industrial Area, Distt: Gautam Budh Nagar, Uttar Pradesh-201306, to M/s. DAKS INDIA INDUSTRIES PRIVATE LIMITED for a sum of Rs. 7,34,16,000 (Rupees Seven Crores Thirty-Four Lakhs Sixteen Thousand Only). Notably, the buyer is not affiliated with the Promoter, Promoter Group, or Group Companies, making this transaction unrelated party involvement.
Company Overview
Rasandik Engineering Industries Ltd is a prominent player in the manufacturing sector, offering engineering solutions, design, and production of sheet metal components and assemblies for the automobile industry. Their product range includes sheet metal components, press tools, and dies designed for high-tensile applications in various sectors, including Heavy Commercial Vehicles (HCV), Light Commercial Vehicles (LCV), Passenger Vehicles (PV), tractors, and the 2-wheeler industry. Additionally, they engage in heavy fabrication work for railways.
With operational plants located in Gurgaon, Surajpur, Greater Noida, Mewat, and Pune, the company boasts an impressive installed capacity of approximately 97,940 MT for sheet metal components and around 30,000 MT for Tailor Welded Blanks.
Notably, Rasandik Engineering Industries Ltd expanded its portfolio on August 6th, 2022, by launching Electric Auto/E-Auto, branded as "Samrat." This vehicle offers seating for the driver plus six passengers.
Financial Highlights
The company currently holds a market capitalization of Rs 51 crores and has demonstrated a robust 3-year stock price Compound Annual Growth Rate (CAGR) of 30 percent. In Q1FY24, it reported net sales of Rs 27 crores and an operating profit of Rs 19 lakhs.
Market Performance
On Thursday, shares of Rasandik Engineering Industries Ltd surged to Rs 86.05 per share, reaching an intraday high of Rs 91.01 and a low of Rs 85.28. As of June 2023, the company's promoters maintain a substantial stake, accounting for about 53 per cent of ownership.
Financial Health
The company's debtor days have shown improvement, decreasing from 36.2 to 28.5 days. Remarkably, this micro-cap stock has been making waves despite the fragile market conditions and is currently trading at 0.55 times its book value, indicating investor interest and potential value.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.