Shares of this penny stock associated with the ‘plastic products’ zoomed 12 percent after the company announced financial results for Q2FY24, i.e., for the quarter ended September 2023. The company’s stock also hit its fresh 52-week high mark.
With a market capitalization of Rs 168.27 crores, the stocks of Captain Polyplast Limited opened their trading hour on Thursday at Rs 30.40 and currently trades at Rs 33.40, gaining around 12 percent compared to the previous close of Rs 29.80 apiece.
Such sharp bullish sentiments around the company’s stock price were observed after it published robust financial results for the quarter ended September 2023.
On a sequential basis, the company reported a dip in the basic business indicators such as operating revenues as well as net profits with the former reducing from 72.6 crores during Q1FY23-24 to Rs 70.3 crores during Q2FY23-24, and, the latter, during the same period, declining from Rs 3.78 crores to 3.44 crores.
On a contrasting note, the company, comparing Q2FY22-23 v/s Q2FY23-24, the abovementioned metrics showed positive movements with the operating revenues increasing from Rs 35.6 crores to Rs 70.3 crores, and, the net profits, keeping the timeframe the same, drastically moving up from Rs 8.8 lakhs to Rs 3.44 crores indicating an increase of around 3,810 percent.
During the past few financial years, the company has been able to increase its profitability ratios and improve margins.
The return on equity (RoE) rose from 4.3 percent during FY21-22 to 8.14 percent during FY22-23, and, the return on capital employed (RoCE) increased from 9.25 percent to 11.25 percent. Moreover, the net profit margins of the company increased from 1.47 percent to 2.51 percent during the same period.
As per the shareholding pattern data available for the quarter ended September 2023, the company’s Promoters hold a 66.51 percent stake followed by the Public (retail) investors holding the remaining 33.49 percent in the company.
Captain Polyplast Limited is engaged in the business of manufacturing as well as selling micro-irrigation systems and allied products. The product portfolio of the company includes irrigation equipment such as irrigation laterals, valves, irrigation filters, compression fittings, etc, and solar systems including water pumping systems, heaters, and many more.
Written by Amit Madnani
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