The shares of this engineering firm involved in the manufacturing of plastic extrusion machinery saw its shares surge by 5 percent to an intraday high of Rs 431.25 apiece from its previous close after it announced the approval of bonus equity shares in the ratio of 1:1 to its existing shareholders.
Share price movement: With the market capitalization of Rajoo Engineers Limited standing at Rs 2,644.70 crores the stock has generated both multi-bagger returns of 788 percent and 117 percent over the past year and six months respectively. The shares of this firm surged around 5 percent at 11:19 AM on Monday’s market session.
What happened: As per the BSE filings published by Rajoo Engineers Limited, the board of directors of the firm has approved a bonus issue of equity shares in the ratio of 1:1 to its existing shareholders.
This means that for every Re 1 of equity share a shareholder currently owns, they will receive 1 additional share with a face value of Re 1.
Financials: Comparing the financials of the firm from the previous quarter to the current quarter, the sales generated by Rajoo Engineers Limited declined by 3.4 percent from Rs 52.68 crores in Q4FY24 to Rs 50.87 crores as of Q1FY25. For the same time period, the profits generated by the firm also declined by 14.5 percent from Rs 6.25 crores to Rs 5.34 crores.
Analyzing and comparing the financials from the previous corresponding quarter, the sales surged by 68 percent from Rs 31.21 crores in Q1FY24 to Rs 50.87 crores. In Q1FY25. Also for the same time frame, the net profits increased by 117 percent from Rs 2.46 crores to Rs 5.34 crores.
Ratios: The trailing 12 months’ return on equity and return on capital employed stood at 16.51 percent and 22.33 percent respectively. Also for the same period, the debt to equity of Rajoo Engineers Limited stands at 0.01 times.
EBITDA: The EBITDA of Rajoo Engineers Limited rose by 144 percent from Rs 2.91 crore in Q1FY24 to Rs 7.12 crore as of Q1FY25.
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Orderbook: As of FY24, the order book of Rajoo Engineers Limited stood at Rs 140 crores.
Client base: Rajoo Engineers Limited caters to various clients such as Poly cab wires and cables, Reliance Industries Limited, Indian Oil, Balaji Multiflex Private Limited, etc. The firm has also exported its products and services to over 70 plus countries.
Product portfolio: The firm’s product portfolio includes Mono and Multilayer Blown Film lines, Mono and Multilayer sheet lines, Thermoforming and PS foam Vaccum forming machines, Mono and multilayer Extrusion coating and lamination lines, PVC segment and Cross lamination film lines.
Future plans: Rajoo Engineers Limited plans to add new products like extrusion coating and multistation thermoformer to its existing portfolio. It is also seeking technical alliances to develop new and technically advanced products. They also have plans to increase penetration in existing key markets of India, Latin America, Asia Pacific, and the Middle East.
Shareholding Pattern: As of June 2024, the promoters of the company held 66.56 percent of the stakes, and the foreign institutional investors held 0.27 percent of the stakes of Rajoo Engineers limited
About the Company: Incorporated in the year 1986, Rajoo Engineers Limited manufactures plastic extrusion machinery in Gujrat and also offers customized solutions as per customers’ requirements. The firm’s head office is located in Gujrat.
Written By Zahal
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