Multibagger Stock Hits 10% Upper Circuit As Board Declares 1:10 Stock Split: Do You Own?

OK Play India is a consumer discretionary small-cap firm. The largest domestic toy brand in India, OK Play India Ltd., offers school supplies, healthcare products, outdoor play equipment, and indoor toys. With a 165% year-to-date return, it is one of the multibagger stocks that the Indian stock market has generated in 2023. The company has declared its Q2FY24 results along with a corporate action of 1:10 stock after the shares of OK Play India locked in 10% upper circuit at Rs 129.60 apiece on Thursday.

On a standalone basis, the company reported revenue from operations of Rs 29.53 crore in the September 2023 quarter up 2.43% from Rs. 28.83 crore in the September 2022 quarter. It recorded a net profit of Rs. 0.54 crore in Q2FY24 compared to a net loss of Rs 1.30 Cr in Q2FY23.

On a consolidated basis, the company achieved revenue from operations of Rs 40.31 Cr in Q2FY24 up by 0.55% YoY from Rs 40.09 Cr in Q2FY23, however sequentially PAT has dropped 6.80% QoQ from Rs 43.25 Cr in Q1FY24. In Q2FY24, EBITDA climbed significantly by 17.38% YoY to Rs. 8.03 crores. EBITDA margin jumped from 17.03% in Q2FY23 to 19.86%, a 283 bps growth. In Q2FY24, the company recorded a positive PAT of Rs. 0.42 crores. PAT Margin for Q2FY24 was 1.03%.

Mr. Rajan Handa, Managing Director, commented on the performance, "We are pleased to announce that the company has successfully executed major contracts within the Private Label & Retail sector of our toys division and has subsequently received orders in alignment with these agreements. Production for a portion of these orders has commenced, with commercialization scheduled for the second half of this fiscal year. Leveraging our established presence in the B2B realm, our strategic focus now centers on expanding our toys business through both the Retail and Contract Manufacturing domains."

"Additionally, we anticipate a notable growth in our Auto Components segment's performance beginning this ongoing quarter, with a sustained and steady growth trajectory. We are particularly optimistic about experiencing robust expansion in the toys segment, which would drive growth, complemented by the Auto Components and Electric Vehicle (EV) sectors. Looking ahead, we are confident that the second half will prove to be pivotal for our company, propelling an overall revenue growth exceeding 15% for the current fiscal year, along with an EBITDA margin approximating 20%," he further added.

The sub-division or stock split of Ok Play India Ltd.'s equity shares at a ratio of 1:10 has been authorised by the board of directors. According to the company's BSE filing, the Board of Directors has given the go-ahead to subdivide or split the equity shares of the company to sub-divide/split the equity shares of the company of every 1 equity share of the nominal/face value of Rs. 10/- each into 10 equity shares of the nominal/face value of Rs. 1/- each.