1:3 Bonus Shares: Monday, December 02 Record Date; Right Time To Pick Stake?

In the Indian subcontinent, Rajoo Engineers leads the market for thermoformers, sheet lines, and blown film lines. It is a plastic extrusion machine manufacturer and exporter. Rajoo Engineers Limited, a Rajkot-based company, started off in 1986 but has since grown to become a major participant in the world of blown film and sheet extrusion lines. With customers in more than 40 countries and representatives in several nations, the company's exports have increased significantly since its 1990 worldwide launch.

Rajoo Engineers Bonus Shares

"This is in furtherance of our letters dated October 14, 2024 and November 15, 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 1:3 i.e. 1 (One) Equity Shares of face value of Re. 1/- each for every 3 (Three) 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 Monday, December 02, 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 Monday, December 02, 2024," said Rajoo Engineers in a stock exchange filing on November 19, 2024.

Rajoo Engineers Financials

Rajoo Engineers Limited, one of India's top producers of plastic extrusion machines with almost 38 years of experience, released its unaudited financial results for the first half and second quarter that ended on September 30, 2024.

In Q2 FY25, the quarter's revenue from operations was Rs. 56.81 crore, up 6.12% year on year from Q2 FY24's revenue of Rs. 53.53 crore. In Q2 FY25, the company's EBITDA was Rs. 9.14 crore, up 27.47% from Q2 FY24's Rs. 7.17 crore, while its EBITDA margin was 1.610%, up 270 basis points year on year. The firm reported that its profit after tax was Rs. 7.24 crore in Q2 FY25, up 36.74% year on year from Rs. 5.29 crore in Q2 FY24, while its PAT margin was 12.74%, up 285 basis points from 9.89%.

Ms. Khushboo Chandrakant Doshi, Managing Director, Rajoo Engineers Ltd said: "During the second quarter ended 30th September 2024 we have registered a Revenue of Rs. 56.81 cr, EBITDA of Rs. 9.14 crore and PAT of Rs. 7.24 crore. During the quarter we had an encouraging order book resulting in higher production and increased dispatches throughout the period. 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 22-micron thickness and 2,800 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."

"I am also happy to share that Rajoo Engineers has received double honors at the prestigious Machinist Super Shopfloor Awards 2024. This recognition underscores our dedication to excellence in manufacturing and highlights our leadership and innovative spirit in the industry. Such accolades not only affirm our strategic direction but also motivate our teams to continuously push the boundaries of what is possible," she added.

"As we reflect on this quarter, we remain committed to innovation and excellence. Our achievements in securing industry recognition, expanding our international client base, and acquiring strategic assets collectively enhance our competitive position. We look forward to leveraging these milestones to drive continued success in the forthcoming quarters," Khushboo Chandrakant Doshi stated.

Rajoo Engineers Share Price Target

"Rajoo Engineers stock price is bullish on the Daily charts with strong support at 355. A Daily close above resistance of 408 could lead to a target of 444 in the near term," said A R Ramachandran, Independent Research Analyst.

Disclaimer

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