Stock under ₹100 jumps 8% after reporting 90% YoY increase in net profit

Synopsis: Rajoo Engineers Ltd shares surged 8% after Q3 results, with revenue up 56% YoY to ₹87.59 Cr and net profit rising 90% YoY to ₹17.87 Cr.

The shares of a Small-cap company specialising in designing and manufacturing advanced plastic extrusion machinery, including mono/multi-layer blown film lines, sheet lines, thermoformers, and foam extrusion systems, catering to various sectors, are in focus following their Q3 results with a 90 percent rise in profit.

With a market capitalization of Rs. 1,246.97 Crores on Tuesday, the shares of Rajoo Engineers Ltd jumped upto 8 percent, reaching a high of Rs. 73.80 compared to its previous close of Rs. 68.33.

What Happened

Rajoo Engineers Ltd, engaged in designing and manufacturing advanced plastic extrusion machinery, is in the spotlight today as they have announced their Q3 results as follows:

Its Revenue from operations rose by 56 percent YoY from Rs. 56.07 Crores in Q3FY25 to Rs. 87.59 Crores in Q3FY26, and it declined by 5 percent QoQ from Rs. 92.25 Crores in Q2FY26 to Rs. 87.59 Crores in Q3FY26.

Its Net Profit YoY rose by 90 percent from Rs. 9.40 Crores in Q3FY25 to Rs. 17.87 Crores in Q3FY26, and on a QoQ basis, it rose by 27 percent from Rs. 14.09 Crores in Q2FY26 to Rs.17.87 Crores in Q3FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 0.94, compared to Rs. 0.56  in the previous year’s quarter.

Rajoo Engineers Ltd. (REL) is a leading Indian manufacturer, established in 1986, specializing in high-tech plastic extrusion machinery, offering solutions for films, pipes, sheets, and more, known globally for innovation, energy efficiency, and sustainable tech in flexible packaging. 

The company operates from Gujarat, serves diverse polymer needs with mono/multi-layer lines and automation, and maintains strong customer loyalty through quality products and services, competing with global players. 

The company shows strong profitability, with ROCE of 32.6% and ROE of 26.1%, supported by a very low debt-to-equity of 0.05. The stock trades at a P/E of 23.1, which is attractive compared to the industry P/E of 31.1.

It has delivered robust profit growth of 90.7% CAGR over the last five years, along with improved efficiency. Debtor days reduced from 29.6 to 21.7 and working capital days fell from 37.8 to 12.7, reflecting stronger cash flow management.

Over the past five years, the company has delivered strong growth, with compounded sales increasing at 21% while compounded profit growth surged to an impressive 91%, reflecting significant improvement in profitability and operational efficiency.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Stock under ₹100 jumps 8% after reporting 90% YoY increase in net profit appeared first on Trade Brains.