The shares of this microcap company surged upto 9 percent in Wednesday’s trading session after announcing robust results and record date for 1:1 bonus share.
Price Movement:
With a market capitalization of Rs. 223 crores, the shares of Sprayking Ltd started Wednesday’s trading session on a higher note at Rs. 42.79 compared to its previous close of Rs. 41.07. During the trading session, the shares hit a high of Rs. 45, gaining around 9 percent and are currently trading at Rs. 42.27 apiece.
What Happened:
Such a positive movement in the share price was observed after the company announced their Q1FY25 results. Quarterly, the revenue surged by around 78 percent from Rs. 20.17 crores during the March quarter to Rs. 35.81 crores in the June quarter. In addition, the net profits jumped around 33 percent from Rs. 1.77 crores to Rs. 2.35 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue zoomed by 119 percent from Rs. 16.34 crores during Q1FY24 to Rs. 35.81 crores in Q1FY25. On the other hand, the net profits magnified by 126 percent from Rs. 1.03 crores to Rs. 2.35 crores during the same timeframe.
Additionally, on August 12, the company declared that August 21, 2024, would be the record date for determining shareholders’ eligibility for bonus shares. Shareholders will receive one new fully paid-up equity share for each existing fully paid-up equity share, i.e., a 1:1 ratio.
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Recent Developments:
Earlier, the company had imported high-tech machinery worth Rs. 10 million. This investment is expected to elevate production and boost capacity to 8,000 units daily, marking its entry into the world-class brass valves market, and positioning it favourably in the market, especially against Chinese competitors.
Moreover, Sprayking 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.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 18.27 percent and a return on capital employed (RoCE) of 35.96 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 8.77 percent.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters maintain ownership of 36.41 percent. The remaining 63.60 percent of shares are held by Retail Investors.
Company Profile:
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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