Shares of this small-cap company, involved in manufacturing quartz-based ramming mass and quartz powder, surged nearly 10 percent following its announcement of plans to approve the issuance of bonus shares in the upcoming board meeting.
Price Movement
In Friday’s trading session, Raghav Productivity Enhancers Ltd’s share price reached an intra-day high of Rs.1,219.90 per share, rising 9.5 percent from its previous close of Rs.1,114.30 apiece. The share price has adjusted since then and is currently trading at Rs.1,211.90 apiece.
Rationale for the Rise
The Board of Directors of the company will gather on Friday, October 18, 2024, with a primary focus on the proposal to issue bonus equity shares, pending the necessary approvals.
The board will also review and approve the unaudited financial results (standalone and consolidated) for the quarter/half-year ended September 30, 2024, along with the Limited Review Report, and consider a proposal to increase the company’s authorised capital.
Capacity Enhancement
Raghav Productivity Enhancers Ltd also expanded its production capacity to 2,88,000 MT per annum, up from 1,80,000 MT per annum, in October 2023. The addition of a new line will double the capacity, aligning with the initial design of the new plant for expansion with minimal capital expenditure.
This capacity increase is expected to drive robust volumetric growth in fiscal 2025 and 2026, particularly in the export market, which should enhance the business’s risk profile over the medium term.
International Footprint
Raghav Productivity Enhancers Ltd exports to over 35 countries, achieving volume growth of approximately 90 percent in the export market in FY23, followed by a 19 percent increase in FY24.
Financial Overview
In its latest financial update, the company reported remarkable net sales of Rs.44.84 crore for Q1 FY25, reflecting a 49 percent increase from Rs.30.08 crore in Q1 FY24. Moreover, net profits surged by 44 percent to Rs.8.29 crore in Q1 FY25, compared to Rs.5.74 crore in Q1 FY24, highlighting significant growth during this period.
About the company
Raghav Productivity Enhancers Ltd is the world’s largest manufacturer of silica ramming mass, crucial for lining induction furnaces in steel production. The company is recognized for its innovative solutions that enhance productivity and reduce operational costs for steel and foundry plants globally, with exports to over 35 countries.
Written by – Siddesh S Raskar
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