3400% rally in 5 years! Multibagger stock declares 1:1 bonus shares; do you own?

Multibagger small-cap stock: Captain Technocast, one of the leading manufacturers, exporters, and suppliers of premium industrial castings, has announced the issuance of bonus shares. The company, on Wednesday, approved a 1:1 bonus issue, granting one bonus share for every existing equity share.

The company’s shares are trading at ₹584.95 apiece, which will adjust accordingly post the bonus issuance. This is the second bonus issue by the company, with the last one taking place in July 2022.

The record date, which will determine eligible shareholders for the bonus shares, will be decided and communicated at a later date, the company said in its regulatory filing today.

The company stated that the issuance will be executed through the capitalization of free reserves. Its paid-up share capital will double from ₹11.61 crore, consisting of 11,610,050 equity shares with a face value of ₹10 each, to ₹23.22 crore, comprising 23,220,100 equity shares with a face value of ₹10 each.

Commenting on the bonus issue, Mr Anil V. Bhalu, Managing Director of Captain Technocast Limited, said, "We are delighted to announce this 1:1 bonus issue, a testament to our strong financial foundation and commitment to rewarding our valued shareholders. We are expanding our export business by leveraging our strong presence in Europe and America while scaling our valve production with automation-enabled products to meet rising industry demand."

"With increased production capacity and government incentives, we are enhancing our market position through innovation, operational efficiency, and global expansion. Our consistent growth and profitability empower us to take these strategic steps, reinforcing our commitment to delivering sustained value," he further added.

About the Company

Captain Technocast is a leading manufacturer, exporter, and supplier of high-quality industrial castings, including valves, pumps, fire-fighting equipment, engineering and automobile parts, structural and hardware components, dairy equipment, power plant and boiler parts, aerospace, and defense castings.

In FY24, the company reported total revenue of ₹63.56 crore, with an EBITDA of ₹7.29 crore and a net profit of ₹3.70 crore. In terms of stock performance, it has delivered stellar returns in a very short period, growing by 1,659% over the last three years and 3,381% over the last five years.

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