Multibagger SME stock: Captain Pipes share price has provided outstanding long-term gains for its investors. The company’s strategic moves, such as a 2:1 bonus issue and a 1:10 stock split, have considerably increased the number of shares owned by investors, truly classifying it as a multibagger. These corporate initiatives have led to remarkable growth in share ownership, offering substantial returns to early stakeholders.
The company specialises in the manufacturing and sale of all types of UPVC pipes and fittings, operating from its plant located in Vervaval, Rajkot. Manufacturing facilities are situated in Shapar, Gujarat, allowing the company to maintain a robust market presence both nationally and internationally. In December 2014, the company launched a public issue of 1,101,000 equity shares, successfully raising a total of ₹4.4 Crore to support its growth and expansion initiatives.
Change in shareholding post Bonus shares
Captain Pipes IPO lot size was 3,000, stock traded ex-date for both 2:1 bonus shares and 1:10 stock split on same date. So benefit would come on 3000 shareholding. rise in shares due to 2:1 bonus shares is 6000 (two bonus shares for every one share held).
According to BSE data, Captain Pipes Ltd. has issued one bonus since March 3, 2023. The last bonus declared by Captain Pipes Ltd. was in a 2:1 ratio, with an ex-date of March 3, 2023.
Change in shareholding post Stock-Split
The rise in shareholding from 3,000 to 30,000 due to 1:10 stock split. So, net shareholding of 3,000 company shares jumps to 36,000 (30,000 due to stock split in 1:10 ratio and 6,000 due to 2:1 bonus shares).
Based on BSE data, Captain Pipes Ltd. has undergone one share split since March 3, 2023. The most recent split occurred in 2023, changing the face value of its shares from ₹10 to Re 1. The shares have been trading on an ex-split basis since March 3, 2023.
Returns to early investors
At 11:52 IST, Captain Pipes share price today is trading at ₹17.96 per share on the BSE. So, the absolute value of ₹1.20 lakh ( ₹40 per share issue price x 3000 lot size) jumps to ₹6.46 lakh ( ₹17.96 x 36,000).
Financial Performance
Captain Pipes on January 31, reported an 7.4% year-on-year rise in its standalone net profit for the fiscal’s third quarter ended December (Q3FY25) to ₹1.09 crore. The company had reported a profit of ₹1.02 crore in the year-ago period.
Captain Pipes’s revenue from operations stood at ₹20.66 crores during the quarter ended December (Q3FY25) from ₹20.25 crore in Q3FY24, a year-on-year rise of 2.0%.
The firm reported in its exchange filing that the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter ending in December was ₹1.99 crore, compared to ₹2.13 crore in Q3FY24. The EBITDA margin was recorded at 9.6%, reflecting a decrease of 90 basis points from Q3FY24.
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