1:1 Bonus Shares: Buy By Record Date August 08 For Target Rs.460-550; Hold For?

Having commenced in 1986, Rajoo Engineers Limited, based in Rajkot, has grown into one of the leading companies in the world for blown film and sheet extrusion lines. With clients in more than 70 countries and representations around the globe, the company's exports have gone up dramatically since making its global market debut in 1990.

Rajoo Engineers Record Date For Bonus Shares

"This is in furtherance of our letters dated June 28, 2024 and July 28, 2024, informing the decision of the board of directors and the members of the Company, respectively, for approval of bonus issue of equity shares in the ratio of 1:1 i.e. 1 (One) Equity Shares of face value of Re. 1/- each for every 1 (One) existing Equity Share of face value of Re. 1/- each held by the Shareholders of the Company. Pursuant to Regulation 42 of SEBI Listing Regulations, the Board of Directors of Company has fixed Thursday, August 08, 2024, as the Record Date for the purpose of the aforesaid Bonus Issue and in this regard, Bonus Equity Shares will be issued to the Equity Shareholders, whose names appear in the Register of Members/Beneficial Owners of the Company/Depositories as on Thursday, August 08, 2024," said the company in a regulatory filing on Sunday.

Rajoo Engineers Q1 Results

The quarter's revenue from operations climbed by 63.01% YoY to Rs. 50.87 crore in Q1 FY25 from Rs. 31.21 crore in Q1 FY24. EBITDA jumped by 144.41% to Rs. 7.12 crore in Q1 FY25 from Rs. 2.91 crore in Q1 FY24. EBITDA margin improved by 466 basis points year on year to 13.99% in the quarter under review from 9.33% in the year-ago quarter. Profit after tax climbed by 116.97% YoY to Rs. 5.34 crore in Q1 FY25 from Rs. 2.46 crore in Q1 FY24 while PAT margin jumped by 261 basis points year on year to 10.50% from 7.89%.

Khushboo Chandrakant Doshi, Managing Director, Rajoo Engineers Ltd said, "During the first quarter ended 30th June 2024 we have registered a Revenue of Rs. 50.87 cr, EBITDA of Rs. 7.12 crore and PAT of Rs. 5.34 crore. During the quarter we had encouraging order book and also lifting of the machines were better compared to corresponding previous quarter. The recent expansion of our Rajkot facility marks a significant milestone in our journey of growth and innovation. This development increases our manufacturing capacity by 30%, spanning an impressive 18,000 sq. ft. with an additional 7,000 sq. ft. dedicated to the QCA. Our strategic investment not only boosts production capabilities but also exemplifies our commitment to excellence. Moreover, formation of Shrutina Nexgen Solar LLP, in partnership with Rajoo Engineers Limited and Promoter Group Entities, focuses on establishing a captive solar plant. This Collaboration aims to leverage solar energy to comply with government's solar power utilization scheme, thereby promoting ESG (Environmental, Social, and Governance) compliance through the use of green power."

"The launch of the Proex series of high-performance blown film lines, featuring RELEX 4.0 extruders and CSD 4.0 die, underscores our technological advancement, allowing us to produce films at 900 kg/hr with a 22-micron thickness and 2800 mm lay flat width, achieving unprecedented speeds of 150 m/min. This innovation is a testament to our dedication to energy efficiency and high yield, positioning us at the forefront of industry excellence. As we move forward, we strive to continue our growth momentum through robust product offerings and a strong market position. With a positive outlook for both domestic and export markets, we are confident in securing substantial orders from high-growth regions, aligning with our expectations," Khushboo Chandrakant Doshi said.

"Rajoo Engineers remains steadfast in sustaining its growth trajectory and reinforcing its market presence. We are assured that our unwavering dedication to quality, innovation, and customer satisfaction will persist as the cornerstone of our achievements. I would like to thank each member of the Rajoo family, as well as our Clients, Creditors, Banks, Financial Institutions, and all other Stakeholders. Their faith in us and support extended makes it easier for us to strive and excel," he further added.

Rajoo Engineers Share Price Target

"Rajoo Engineers Ltd. is a small cap displaying a strong uptrend. However, the stock is currently trading in overbought conditions. This is why, I recommend traders and investors to be cautious of their investment approach for this one and invest in low volume. Regardless, those willing to bet on this stock can enter the Rs.390-420 range, for a target price of Rs.460-550. They can hold this stock for a period of 1-6 weeks while adhering to the stop loss of Rs. 370," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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