Shares of this small-cap stock hit the 2 percent upper circuit after the company’s Board approved the Buyback of equity shares worth Rs 19.78 crores. Year-to-date, the company’s stock has delivered multibagger returns of more than 450 percent for its stakeholders.
With a market capitalization of Rs 1,024.18 crores, the stocks of Rajoo Engineers Limited opened in green on Wednesday at Rs 166.35, and, during the last few trading minutes, the stock hit its 2 percent upper circuit at Rs 166.45 apiece. The locked price is also marked as the company’s fresh 52-week high level.
The stock gained traction after a regulatory filing that was published today with the Bombay Stock Exchange (BSE) pertaining to the intimation about the Board of Directors approving the proposal for the Buyback worth Rs 19.78 crores, viz, around 9.42 lakh equity shares representing 1.53% of the total equity shares of the Company as of March 31, 2023, at Rs 210 per equity share.
The above Buyback is proposed to be made from the existing shareholders on a proportionate basis as on the record date through a ’Tender Offer’ route.
During the recent financial quarter periods, the company has successfully been able to report an increase in the prime indicators of business such as operating revenues as well as after-tax profits.
The former rose from Rs 31 crores during Q1FY23-24 to Rs 53 crores during Q2FY23-24, and, the latter, keeping the timeframe the same, more than doubled from Rs 2 crores to Rs 5 crores.
The latest shareholding data of the company, as per the September 2023 quarter, portrays the Promoters holding a 66.33 percent stake, and the Public (retail) investors holding the remaining 33.67 percent stake in the company.
Incorporated in 1986, Rajoo Engineers Limited is engaged in the business of manufacturing and selling plastic processing machinery and post-extrusion equipment within and outside India. The company offers mono and three-layer blown film lines, downward extrusion blown film lines, as well as sheet extrusion technology for solar modules.
Written by Amit Madnani
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