Multibagger stock Sprayking soared 3092% in 4 years, jumped from ₹1.5 to ₹50.7
Sprayking stock has surged over 3,000% in 4 years, with recent multibagger returns. It has risen 18% YTD and is 15.5% away from its record high. The company secured a milestone order for hose nozzles from Flobal Corporation.
Microcap stock Sprayking has given exceptional returns to its investors in the last 4 years. The stock has skyrocketed around 3,092 percent from ₹1.59 in April 2020 to currently trade at its record high ₹50.75.
Meanwhile, the stock has also given multibagger returns, almost 132 percent in the last 1 year.
Just in 2024 year-to-date (YTD), the stock has risen 18 percent from ₹42.98 in December 2023. This year so far, the scrip has given positive returns in 4 of the 5 months till date. The stock has jumped 14 percent in the 2 sessions of May, after a 1.5 percent rise in April. However, the stock shed 16.2 percent in March. Meanwhile, it was up almost 16 percent in February and was flat but in the green in January.
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Despite the rise in May, the stock is 15.5 percent away from its record high of ₹60.04, hit on February 8, 2024. Meanwhile, it has advanced over 181 percent from its 52-week low of ₹18.05, hit on May 8, 2023.
About the firm
Sprayking, formerly known as Sprayking Agro Equipment, is a renowned manufacturer of brass components and parts. Their products include fittings, forging equipment, transformer parts, and more, all customised to meet specific needs. It also manufactures and trades agricultural sprayer parts, garden fittings, extruded brass rods, and lead-free brass fittings.
Sprayking recently achieved a significant milestone by securing its first-ever sample order for hose nozzles from Flobal Corporation, a major provider of plumbing parts for manufacturing industries worldwide for over a century. This win is a substantial achievement for Sprayking, a key player in the brass manufacturing sector.
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Sprayking plans to capitalise on its precision engineering expertise to deliver high-quality hose nozzles that meet Flobal Corporation’s strict standards. This collaboration marks an important step for Sprayking’s expansion into international markets and underscores its commitment to delivering superior products.
The company has a market cap of ₹224 crore. In the December quarter (Q3FY24), the company’s net profit declined 58.62 percent year-on-year (YoY) to ₹0.12 crore while its net sales fell 54.27 percent YoY to ₹2.41 crore.
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Brokerage view
According to domestic brokerage house ICICI Direct, Sprayking exhibits several key strengths, including strong momentum with its stock price consistently outperforming its short, medium, and long-term moving averages. The company also boasts robust annual earnings per share (EPS) growth, reflecting its strong financial performance. Additionally, Sprayking maintains a low debt level, contributing to its financial stability and resilience.
However, the firm also faces certain weaknesses, including a decrease in quarterly revenue and profit in its recent year-over-year results, noted ICICI. Furthermore, the company has a low Piotroski Score, which suggests weaker financial health. Additionally, Sprayking has experienced a decline in net cash flow, indicating challenges in generating sufficient cash from operations. These factors point to areas where the company may need to focus on improving its financial performance, stated the brokerage.
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What are microcap stocks?
Microcap stocks are shares of publicly traded companies with a relatively small market capitalization, usually under ₹500 crore (approximately $68 million). These stocks are generally considered higher-risk investments due to their smaller size and lower liquidity, which can result in notable price volatility. Despite these risks, microcap stocks may offer substantial growth potential as emerging businesses expand and mature.
Investors in microcap stocks should undertake comprehensive research and due diligence to understand a company’s financials, business model, and management team.
Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.