Multibagger in six months: Sprayking Agro Equipment launches new product; Stock jumps over 2%

Wednesday concluded on a muted note, with both the Sensex and Nifty falling by 0.83% and 0.71%, respectively. It was undoubtedly a challenging day for the markets.

In contrast, to dampen market sentiment, the shares of Sprayking Agro Equipment Limited zoomed 2.02%. The company’s current market capitalisation is Rs 213.47 crore.

Established in 1980, Sprayking Agro Equipment Ltd specializes in trading and exporting various brass items, including brass sanitary fittings and brass agricultural products.

Recently the company achieved significant milestones, let’s have a look:

1. The company expanded its operations by acquiring a new manufacturing facility in Jamnagar, Gujarat. This facility, covering an area of 3,000 square meters, specializes in producing brass and forging components, similar to the company’s existing manufacturing unit. This strategic addition bolsters the company’s market presence and capabilities.
2. Sprayking Agro Equipment Limited acquired a 51% stake in M/s. Narmada Brass Industries, a partnership firm established in 2019 by Mr. Hitesh Dudhagra. Narmada Brass Industries operates its manufacturing unit for copper and brass products with an annual capacity of 2000 tons of forged products. This acquisition opens doors to new domestic and international business opportunities.

By embracing both organic and inorganic growth strategies, Sprayking Agro Equipment Ltd is actively pursuing its vision and mission. The funds raised are earmarked for furthering the company’s growth and, consequently, creating value for its stakeholders.

Commenting on this development, Hitesh Dudhagara, Managing Director of Sprayking said: “We are thrilled to announce the latest addition to our growing range of innovative products here at Sprayking Agro Equipment Limited. As a leading brass manufacturer, we continuously strive to push the boundaries of what is possible in our industry, and our new forging product for sensor parts exemplifies our commitment to excellence.”

Other than the recent development, there is an interesting fact about the cocompany’shareholding pattern: Over the course of just a few months, there has been a remarkable transformation in the ownership structure of the company. In September 2022, the promoters held a significant 72.77% of the company’s shares. However, by March 2023, this ownership stake had seen a dramatic reduction to 36.41%, and this percentage remained consistent in the June 2023 quarter.

Notably, the pledge ratio remained at zero throughout this period of transition. The reasons behind this substantial reduction in promoter holding could vary, and it certainly raises questions about the evolving dynamics within the company. It will be intriguing to observe how this alteration in ownership might influence the company’s future strategies and decisions.

Furthermore, the stock has witnessed significant buying activity as it has given multibagger returns of more than 118% in just 6 months.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.