Synopsis:
R M Drip and Sprinkler Systems gained attention after its board approved a 1:10 stock split, which aimed to make shares more affordable and increase liquidity.
A small-cap company that manufactures micro irrigation systems came into the spotlight after announcing that its board has approved a stock split, a move likely aimed at making its shares more affordable and improving liquidity for investors.
With Market Capitalization of Rs. 1,818.54 crore, R M Drip and Sprinklers Systems Limited is trading at 728, up by 0.94 percent from its previous closing price of Rs. 721.25 per equity share. The stock reached a high of Rs. 735 in today’s trading session.
What’s the News?
R M Drip and Sprinklers Systems Ltd held a Board meeting on 22nd August 2025 and approved a proposal to split each existing Rs. 10 equity share into 10 shares of Rs. 1 each, subject to shareholders approval. The record date for this split will now be decided after approval at the upcoming Annual General Meeting (AGM).
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What is a Stock Split?
A stock split means a company divides its existing shares into a larger number of shares. This does not change the total value of an investor’s holding, but increases the number of shares they own while reducing the price of each share.
For example, if you own 1 share worth Rs. 1,000 and the company announces a 1:2 stock split, you will then have 2 shares worth Rs. 500 each. Stock splits make shares more affordable and can improve liquidity in the market.
About the Company
RM Drip and Sprinklers Systems Limited, established in 2004, designs and manufactures micro irrigation systems and components while assisting farmers with installation and system design.
The company also serves as an OEM supplier to other irrigation companies and has a large dealer network in multiple Indian states. Initially engaged in job work, RM Drip gradually expanded its operations and became a publicly traded company in 2017, establishing new premises in Sinnar and steadily growing in the micro irrigation sector.
The company reported a revenue of Rs. 97 crore in March 2025, marking a 177.14 percent increase compared to Rs. 35 crore in September 2024 and a 130.95 percent rise from Rs. 42 crore in March 2024. Similarly, net profit stood at Rs. 20 crore in March 2025, up 300 percent from Rs. 5 crore in March 2024 and 400 percent from Rs. 4 crore in September 2024.
At the movement company is trading at a price-to-earnings (P/E) ratio of 76x which is higher than industry average of 24.1x. A return on equity (ROE) of about 39 percent and a return on capital employed (ROCE) of about 44 percent demonstrate the company’s financial position. Its debt-to-equity ratio stands at 0.32, showing low leverage in the company.
Written By Akshay Sanghavi
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