Shares of the microcap company clocked 20 percent upper circuit in Wednesday’s trading session after reporting an increase in net profits by 1062 percent. In one year, the shares have delivered a multibagger return of 689 percent to its shareholders.
With a market capitalisation of Rs. 264 crores, the shares of Sprayking Ltd started Wednesday’s trading session on a higher note at Rs. 250.20 compared to its previous close of Rs. 208.50. Within a few minutes of the opening bell, the shares clocked 20 percent upper circuit at Rs. 250.20, also recorded as the company’s fresh 52-week high.
Such bullish movement in the share price was observed after the company announced their quarterly results. Looking at the consolidated financial statements, the revenue increased marginally by 0.5 percent from Rs. 32.51 crores in the June quarter to Rs. 32.65 percent during the September quarter. In addition, the net profit improved by 23 percent from Rs. 2.74 crores to Rs. 3.37 crores during the same period.
Comparing these metrics on a YoY basis, the revenue zoomed by around 520 percent from Rs. 5.27 crores during Q3FY23 to Rs. 32.65 crores in Q3FY24. During the same period, the net profits magnified by 1,062 percent from Rs. 29 lakhs to Rs. 3.37 crores.
Earlier, the company purchased a new 3,000-square-meter modern manufacturing plant facility in Gujarat’s Jamnagar. Like the company’s current manufacturing facility, the unit will produce brass and forging components and parts. The company’s market position may also be strengthened with the installation of this production plant.
Furthermore, the company’s focus is on producing quality brass parts for various industries, and it offers a range of products such as turning components, brass compression fittings, sanitary fittings, brass pipe and many more.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 3.92 percent during FY 21-22 to 10.04 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 10.04 percent to 13.83 percent during the same timeframe. Furthermore, the net profit margin increased from 2.19 percent during FY21-22 to 8.79 percent during FY22-23.
Headquartered in Gujarat, Sprayking Ltd was incorporated in 1980. The company is involved in the manufacturing of a variety of products, including sprayers, plumbing components, screws, transformer parts, and other hand tools and accessories.
Written By Vaibhav Patil
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