Shares of this microcap company jumped around 2 percent in Wednesday’s trading session after receiving an order worth Rs. 15 million for 25 Tonnes Brass Rod.
With a market capitalization of Rs. 215 crores, the shares of Sprayking Ltd started Wednesday’s trading session on a higher note at Rs. 41.45, gaining around 2 percent compared to its previous close of Rs. 40.20 and are currently trading at Rs. 40.90 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had secured a substantial order of 25 tonnes of brass rods worth Rs. 15 million (Rs. 1.5 crores) from a new domestic client. Additionally, the company highlighted the strategic timing of this order, aligning with the recent inauguration of its state-of-the-art manufacturing facility.
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 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.
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
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