3390 Per Cent Returns: Multibagger Machinery Stock in Focus as Board Approves Rs 225 Crore QIP
Key resolutions included the approval to raise funds up to Rs 225 crore through Qualified Institutions Placement (QIP) in accordance with SEBI regulations.
On Tuesday, shares of Rajoo Engineers Ltd dropped 4.77 per cent to close at Rs 118.70 per share from its previous closing of Rs 124.65 per share. The stock’s 52-week high is Rs 332.93, while its 52-week low is Rs 67.50.
Rajoo Engineers Limited held a board meeting today, Tuesday, March 04, 2025, at its registered office in Gujarat. Key resolutions included the approval to raise funds up to Rs 225 crore through Qualified Institutions Placement (QIP) in accordance with SEBI regulations. This strategic move aims to support future expansion plans and strengthen the company’s financial position. Additionally, the board approved an increase in the company's Authorized Share Capital from Rs 18 crore to Rs 20 crore, necessitating an amendment to the Capital Clause of its Memorandum of Association.
About the Company
Rajoo Engineers, incorporated in 1986, specializes in manufacturing plastic-extrusion machinery. Headquartered in Gujarat, the company provides customized solutions for clients across industries. Its product range includes Mono & Multilayer Blown Film Lines, Extrusion Coating & Lamination Lines, and Cross Lamination Film Lines. Notably, around 60 per cent of its annual business comes from repeat orders. The company has a strong client base, including Uflex, Reliance Industries, Indian Oil, Binny Wads, and Suvi International.
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Financial Performance
According to Q3FY25 results, the company reported a 7 per cent decline in sales to Rs 56.1 crore compared to Rs 60.1 crore in Q3FY24. However, EBITDA surged 41 per cent to Rs 10.8 crore from Rs 7.69 crore, while net profit increased 56 per cent to Rs 8.89 crore from Rs 5.71 crore in the previous year. Earnings per share (EPS) also improved by 54 per cent to Rs 0.54 from Rs 0.35.
Looking at stock performance, Rajoo Engineers has delivered a 75.85 per cent return from its 52-week low and an impressive 3387.93 per cent return over the past five years. In the last year, the stock has gained 53.69 per cent, while the Nifty index has declined 1.43 per cent in the same period.
The company has a market cap of Rs 1,947 crore. Investors looking for high-growth potential stocks should keep an eye on this multibagger stock.
Disclaimer: The article is for informational purposes only and not investment advice.