Shares of this micro-cap company jumped 5 percent in Monday’s trading session after receiving an order worth Rs. 10 million. The shares have delivered a whopping return of 617 percent to its investors in one year.
With a market capitalization of Rs. 288 crores, the shares of Sprayking Ltd started Monday’s trading session on a higher note at Rs. 266.80 compared to its previous close of Rs. 261.65. During the trading session, the shares hit a high of Rs. 275, gaining around 5 percent and are currently trading at Rs. 275 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had received a purchase order worth Rs. 10 million for the supply of Brass Rod. Furthermore, the company mentioned that the received order not only strengthens its financial position but also solidifies its position as a trusted supplier in the market.
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.
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.
Moreover, the company aims to produce 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 increasing 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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