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Shares of this leading producer of sprayer components jumped around 2 percent in Wednesday’s trading session after announcing the commencement of a new manufacturing facility in Jamnagar. The shares have delivered a multibagger return of 202 percent in one year to its shareholders. 

With a market capitalization of Rs. 241 crores, the shares of Sprayking Ltd started Wednesday’s trading session on a higher note at Rs. 229 compared to its previous close of Rs. 224.50. During the trading session, the shares hit a high of Rs. 234, gaining around 2 percent and are currently trading at Rs. 227 apiece. 

Such a positive movement in the share price was observed after the company in an exchange filing announced that they had successfully started the commencement of its foundry division in Gujarat. Earlier, the facility was acquired by the company in July 2023, the same is spread over 3000 sq. mtr. 

Furthermore, the newly commenced facility boasts a formidable production capacity of 200 tons of rods per month, reinforcing Sprayking Limited’s position as a key regional player in the brass manufacturing sector. The unit will be manufacturing brass and forging components. 

Additionally, the company mentioned that the facility is equipped with State-of-the-art technology supported by a highly skilled workforce and is poised to deliver high-quality products while adhering to the highest standards of safety and environmental responsibility. 

Moreover, Spraying Limited recently announced a Rs.18 crore expansion project for its manufacturing facility, involving the importation and installation of cutting-edge machinery. These enhancements are to integrate into Spraying Limited’s modern 3,000-square-meter manufacturing plant. 

Coming onto the company’s financial statements, the revenue increased marginally by 0.4 percent from Rs. 32.51 crores during the September quarter to Rs. 32.65 crores in the December quarter. In addition, the net profits zoomed by 23 percent from Rs. 2.74 crores to Rs. 3.37 crores during the same period. 

Earlier, the company’s board approved the stock split, transitioning from Rs.10 face value to Rs. 2 each in a 1:5 ratio. Consequently, shareholders will receive 5 additional shares for each share held. The Record Date is set for Friday, April 12, 2024. 

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. Further, 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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