Shares of this multibagger stock under the ‘micro-cap’ category hit the 5 percent upper circuit in Wednesday’s trading session after the announcement of the incorporation of a new associate company for its Piping systems business.
With a market capitalization of Rs 655.27 crores, the stocks of Meson Valves India Limited opened their trading hour on Wednesday at Rs 644.95 and later on went to hit the 5 percent upper circuit at the same price. The locked price is also registered as the company’s new 52-week high mark.
In the last six months, the shares of Meson Valves India Limited gave multibagger returns of 217 percent to its stakeholders, viz, if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 3.17 lakhs.
Such sharp movements in the stock prices today were witnessed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the incorporation of “Nibe Meson Naval Limited”, an associate company of Meson Valves India Limited. Meson Valves will hold 48.95 percent shareholding of the newly incorporated company.
The associate company is been formed to deal in turnkey projects for ‘Piping Systems’ including fabricated pipes, valves, pumps, and commissioning of piping systems.
For acquiring the abovementioned shareholding in the company, Meson Valves India Limited will subscribe, via cash consideration, to 48,950 shares of face value of Rs 10 per equity share totaling a consideration of approximately Rs 4.90 lakhs.
The remaining shareholding is held by Nibe Limited, another micro-cap company, the shares of which are trading in the green, gaining approximately 2.30 percent.
During the recent financial years, the company reported an increase in both the prime indicators of business, viz, operating revenues as well as after-tax profits. The former increased from Rs 14.10 crores during FY21-22 to Rs 36.65 crores during FY22-23 and, the latter, during the same timeframe, rose from Rs 2.13 crores to Rs 4.52 crores.
Incorporated in 2016, Meson Valves India Limited deals in valves, strainers, actuators, etc to various industries within as well as outside India. It also deals in visualization systems, piping products, pumps, and measurement devices. The company primarily supplies its products to naval, power, refineries, and many other industries.
Written by Amit Madnani
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