Shares of this microcap company jumped around 1 percent in Wednesday’s trading session after announcing importing of high-tech machinery to boost production.
With a market capitalization of Rs. 217 crores, the shares of Sprayking Ltd started Wednesday’s trading session on a flatter note at Rs. 41.50 compared to its previous close of Rs. 41.21. During the trading session, the shares hit a high of Rs. 41.88, gaining around 1 percent and are currently trading at Rs. 41 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that it 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.
Furthermore, the company stated that the recently acquired machinery, sourced from China, is anticipated to revolutionize the manufacturing capabilities. This acquisition will elevate the company’s production capacity to 8,000 pieces per day, positioning it favourably in the market, especially against Chinese competitors.
Moreover, the integration of automation and advanced technology in this equipment is expected to not only enhance production efficiency but also notably elevate product quality.
Looking at the company’s financial performance, the revenue decreased by 38 percent from Rs. 32.65 crores during the December quarter to Rs. 20.17 crores in the March quarter. On the other hand, the net profits declined by 48 percent from Rs. 3.37 crores to Rs. 1.77 crores during the same period.
Earlier, the company 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.
Previously, the company’s board approved the stock split, transitioning from Rs.10 face value to Rs. 2 each in a 1:5 ratio. Consequently, shareholders will receive 5 additional shares for each share held.
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.
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
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
