This share may give huge profit

 

This share of 40 rupees will give huge profit in a few days, know how to buy?

If you are intending to invest money in a company or are seeking for a cheap stock to profit from the market at this moment, this information will be very useful to you. SMC Global Securities has issued a buy recommendation on Captain Polyplast Limited's stock in a recent research (CPL). It is recommended that these shares be purchased with a target price of Rs 55. The last trading day's closing price for CPL was Rs 40.

Good results were presented by the company.

Captain Polyplast Limited, a BSE-listed firm, had a strong fourth quarter, with a 63 percent year-over-year increase. A 2% dividend on the face value of the stock has also been announced. CPL's revenue climbed from around Rs 99 crore to Rs 186 crore between FY 2015 and FY20, while EBITDA increased by more than 2 times and PAT increased by 5.4 times. 

Let us tell you that the company's new production unit in Andhra Pradesh has the potential to generate Rs 250 crores in revenue without the need for extra infrastructure. The company is predicted to generate a 20% CAGR in PAT with steady margins over the next three years, according to the analysis.

Know about the company

CPL is a manufacturer and supplier of micro irrigation systems. With production sites in Rajkot (Gujarat) and Kurnool, CPL offers a comprehensive variety of micro irrigation systems (Andhra Pradesh). The company has a marketing and distribution network in 16 Indian states, covering about 90% of the micro irrigation market in the country. It is overseen by 18 sales offices, 11 depots, and a 250-strong marketing team. CPL has 750 dealers in the northern, western, and southern sections of the country. Apart from that, the corporation exports its goods to Gulf, African, and Latin American regions.

CPL recently completed a capacity increase at its Kurnool plant, adding two PVC lines and one HDPE/Sprinkler line. In addition, CPL Solar is growing its EPC business and has built specific teams for retail, commercial, and large-scale project applications around the country. So far, the company has completed solar EPC projects with a combined capacity of over 1,500 KW for over 340 customers. They now have orders in the queue for 5,000 KW, and more projects are likely to be finalised and completed this fiscal year.

What did the company's chairman have to say?

According to Ramesh Khichdia, the company's Chairman and Managing Director, the company has developed significantly as a result of the growing demand for micro irrigation devices. In the budget for FY 2022, the government has set aside Rs 10,000 crore for micro irrigation, nearly quadruple the amount set aside in previous years, with the goal of covering 10 million hectares in the next five years. He stated that he hopes that this breakthrough would boost our main business of micro irrigation in the coming fiscal year.

Due to increased sales of PVC pipes procured in southern states, we extended manufacturing capacity in Kurnool in Q4. We'll be able to expand our retail pipe distribution network in these states thanks to the added capacity. Throughout the year, we have strengthened our focus on the fastest growing solar EPC category, which is projected to drive our top-end growth.

According to the study, the company's gross margin improved from 31.6 percent in FY15 to 39.2 percent in FY15, while its EBITDA margin increased from 13.3 percent to 15.2 percent over the same time period.Over the last five years, the company has been able to achieve an average ROE of 16.5 percent and a ROCE of 21.8 percent thanks to a strong EBITDA margin.

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Source: news18