Stock of this SME plastic products maker has zoomed 100% in 15 trading days

In past two days, the stock price of Captain Pipes has rallied 20% after the company said its board will meet on January 27 to consider stock split and bonus issue proposal.

Shares of Captain Pipes were locked in upper circuit for the second straight day, up 10 per cent at Rs 602, also its new all-time high on the BSE on Thursday at 12:02 PM; in an otherwise weak market, after the company announced bonus issue and stock split plan.

Since December 13, 2022, in past 15 trading days, the stock price of industrial plastic products maker has doubled or zoomed 100 per cent from a level of Rs 300. In comparison, the S&P BSE Sensex was down 0.54 per cent at 59,781.

On Tuesday, January 10, 2023, Captain Pipes announced that the board of directors of the company will meet on January 27 to consider a proposal for sub-division / split of the equity shares of the company having a face value of Rs 10 each. The board will also consider issue of bonus shares to the shareholders of the company.

Currently, Captain Pipes trades in the small and medium enterprise (SME) segment under the "M" group on the BSE. The trading, clearing and settlement in the SME segment is done on a T+2 basis. Trades done in BSE SME scrips are required to be compulsorily settled in demat mode. The market lot size of the scrip is 500 shares.

Capitan Pipes has low outstanding equity shares of 4.55 million as on September 30, 2022. The promoters held 73.82 per cent stake in the company. The remaining 26.18 per cent holding are with the individual shareholders (21.57 per cent), Polymer Impex Private Limited (3.33 per cent) and Bodies Corporate (0.69 per cent), data shows.

Captain Pipes having its manufacturing facilities at Shapar (Veraval), Rajkot, is engaged in the business of manufacturing and selling of UPVC pipes and fittings.

“There were tremendous potential growth of these industries also pandemic situation is under control and industries are back to work on full pace. As ours is the agriculture based products, there is lot of potential demand for the next year,” Captain Pipes said in FY22 annual report.

The company further said it envisaged remarkable growth over previous years especially in the year 2021-22. Government is providing various incentives to agricultural industries. The customers are also growing rapidly. At the same time, there is intense price pressure from the competitors and international financial crisis, the company said.