Shares of this leading producer of sprayer components lock 20 percent upper circuit in Tuesday’s trading session after receiving a first-ever sample order from a Japanese company. The shares have delivered a multibagger return of 202 percent in one year to its shareholders.
With a market capitalization of Rs. 226 crores, the shares of Sprayking Ltd started Tuesday’s trading session on a flatter note at Rs. 37.80 compared to its previous close of Rs. 37. During the trading session, the shares hit a high of Rs. 44.40 apiece, clocking 20 percent upper circuit.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had received its First-Ever sample order for Hose Nozzles from Flobal Corporation, a Japanese company that has over a century of expertise in supplying piping and tubing components and parts.
Furthermore, the company mentioned that the alliance with Flobal Corporation represents a noteworthy achievement for both entities. Through this collaboration with Flobal Corporation, the company endeavours to utilize its proficiency in precision engineering to deliver top-tier hose nozzles aligning with Flobal Corporation’s stringent criteria for excellence.
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 bought a new manufacturing facility in Gujarat’s Jamnagar. 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.
Previously, 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.
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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