Roto Pumps Gains on Receiving Major Order from Grasim Industries

The Indian headline indices were trading lower, weighed down by losses in the metals, financial services, and banking sectors. BSE Utilities and BSE Power, on the other hand, attempted to lift indices by gaining more than 1.5% each. Broader indices continued to outperform the main indices by a significant margin. 

Roto Pumps Ltd, a small-cap stock, was in the spotlight following the company’s recent announcement. The company declared that it has received a Rs 3.63 crore order from Grasim Industries for the design, engineering, and supply of screw pumps, as well as supervisory support. Shares have experienced considerable buying interest during the early trades of the session. 

On an intraday basis on Friday, shares of Roto Pumps Ltd gained momentum, soaring around 3% to a day’s high of Rs 333.90 per share on the BSE. Shares have corrected and fallen 12% in the last month, but have still returned more than 40% year-to-date. 

Considering the company’s financial performance, on a consolidated basis, it reported a significant growth of 46.18% from Rs 49.23 crore registered in Q4FY22, recording total revenue of Rs 71.96 crore in Q4FY23. When comparing the net profit for the fourth quarter of FY23 to the same quarter last year, it climbed by 58.84% from Rs 6.92 crore to Rs 10.98 crore. Over the last five years, the company has achieved compounded profit growth at a CAGR of 31%. With stronger RoE and RoCE compared to its competitors, it has a considerably low PE. 

Established in 1968, Roto Pumps is the pioneer progressive cavity pump manufacturer in India. It is renowned for offering dependable and efficient pumping solutions to a variety of industries, including wastewater, sugar, paper, paint, oil & gas, chemicals, food & beverage, renewable energy, and power.   

Keep a close eye on this stock for the upcoming sessions! 

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.