Multibagger Penny Stock At 5% Upper Circuit To Trade On BSE Mainboard Platform

One of the top PVC pipe manufacturers, Captain Pipes Ltd, has announced that as of June 12, 2023, its equity shares, which are currently listed under the BSE SME Platform, will be trading under the BSE Mainboard or "B" group on the Mainboard Platform. The small-cap firm announced in March that it will split its stock in a 1:10 ratio and issue bonus shares in a 2:1 ratio. Later, the small-cap firm with a BSE listing revealed that the record date for the issuing of bonus shares and stock subdivision had been set at March 3, 2023.

In FY23 the company registered revenue from operations of Rs 85.84 Cr compared up by 3.44% from Rs 82.98 Cr recorded in the entire financial year ended FY22. The company's expenses stood at Rs 83.35 Cr in 12MFY23 against Rs 82.02 Cr in 12MFY22. The EBITDA increased by 48.14% to Rs. 4.00 Cr whereas EBITDA margin rose by 134 bps to 4.68% in FY23. Captain Pipes registered a net profit of Rs 1.81 Cr compared to Rs 5.13 Cr in FY22, registering a drop of 64.71% YoY.

Captain Pipes said in a release that it is poised to leverage its modern plant for increasing its growth rate. Working along with the growing market demand, it is fully equipped with hi-tech machinery and tools, with extrusion and injection moulding machines of German and Japanese technology, that are must for quality production.

Captain Pipes said it is further looking to increase the mix of high margin products in overall sales, and increase spending in marketing to improve brand strength.

On Thursday, the shares of Captain Pipes closed on the BSE at an upper circuit limit of Rs 32.00 apiece up by 5% from the previous close of Rs 30.48. The stock touched a 52-week-high of Rs 35.79 on (23/05/2023) and a 52-week-low of Rs 2.81 on (13/06/2022), indicating that at the current market price the stock is trading 6.11% below the 1 year high and 1,092.17% above 1 year low.

An investment of Rs 1 lakh in shares of Captain Pipes made five years ago would now have grown to Rs 31.40 lakh since the stock price has increased from Rs 1.33 to the current market price, earning a multibagger return of 3,040.62%. An investment of Rs 1 lakh placed in the stock three years ago would now have grown to Rs 44.56 lakh considering the stock price has gone up from Rs 0.75 to the current market price over the past three years, registering a multibagger return of 4,356.76%.

In the last 1 year the stock price has risen from Rs 3 to the current market price level logging in a multibagger return of 1,016.67%, hence an investment of Rs 1 lakh made in the stock 1 year ago would now have turned to Rs 11.16 lakh.