The shares of one of the emerging leaders in Bass part manufacturing gained up to 5 percent after the company’s Board of the Company has approved the raising of funds for its subsidiary through an Initial Public offer.
Sprayking Agro Equipment Ltd is a Micro-cap with a market capitalization of Rs 245.18 Crore. On Monday, the shares closed at Rs 232 a share, an increase of 0.15 percent from the previous close price.
According to the exchange filing, Spraying Agro Equipment Ltd board of the Company has approved the raising of funds for its subsidiary Narmadesh Brass Industries Ltd through an Initial Public offer. Additionally, raising funds for the Subsidiary Company is a strategic move by Sprayking in order to grow and expand the business operations.
Most recently, Sprayking Agro Equipment Ltd acquired a 51 percent stake in M/s. Narmada Brass Industries. Narmada Brass has its own production facility where it manufactures copper brass goods. The plant has the capacity to produce 2,000 tons of forged goods per year.
Looking into the company’s finances, Sprayking Agro Equipment Ltd’s revenue increased by 909 percent from Rs 3.22 Crore in Q2FY23 to 32.51 Crore in Q2FY24. During the same period, net profits increased by 1,726 percent from Rs 0.15 crore to Rs 2.74 crore.
The stock has delivered a multi-bagger return of 93.33 percent in six months and 825 percent in a year. As a result, if an investor bought Rs 1 lakh shares in the company, their shares are now worth 9.25 lakhs in a year.
Sprayking Agro Equipment Ltd’s recent shareholding pattern, The Promoters of the company owns 36.41 percent while Retail shareholders own 63.59 percent stake in the company.
Sprayking Agro Equipment Ltd’s reported an increase in return ratios from the previous financial year, a return on equity (ROE) increase from 3.88 percent to 10.04 percent, and a return on capital employed (ROCE) increase from 5.21 percent to 13.82 percent.
Sprayking Agro Equipment Ltd is engaged in trading and exporting Brass items like Brass sanitary fittings, Brass Agricultural items, etc.
Written By:- Abhishek Singh
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