Multibagger penny stock under Rs 40: Company allocated Rs 67 crore capex for defence facility, 4.8MW solar plant commissioned and Q4FY25 revenue Rs 27.9 crore

From Rs 14 (52-week low) to Rs 34.31 per share, the stock gave multibagger returns of 145 per cent.

On Wednesday, shares of Tirupati Forge Ltd hit a 5 per cent upper circuit to Rs 34.31 per share from its previous closing of Rs 32.68 per share. The stock’s 52-week high is 72.88 per share and its 52-week low is Rs 14 per share.

Backed by over 15 years of experience in manufacturing forged and machined components, Tirupati Forge Ltd operates a 5-acre unit with in-house testing and R&D, achieving a 15,000 TPA capacity under IATF 16949:2016 and ISO 9001:2015 standards; as a leading Indian flange supplier, it serves diverse global sectors, with 55 per cent of its revenue from overseas markets, and is one of only 3 Indian firms with a 630 Ton Lasco Press Line, complemented by hydraulic extrusion and MPM hammer forging capabilities, ring rolling for 150mm-800mm OD, 1000 kg/hr heat treatment, and CNC machining up to 800mm OD, including 1000mm OD VMC machines.

According to Quarterly Results (Q4FY25), the company reported net sales of Rs 27.50 crore and net profit of Rs 1.30 crore. In its annual results (FY25), the company reported net sales of Rs 115 crore and net profit of Rs 8 crore.

With a commitment of Rs 67 crore in CAPEX, the company is establishing a defence manufacturing facility projected to achieve an asset turnover ratio of approximately 4x and an EBITDA margin exceeding 25 per cent, significantly higher than the current 14.3 per cent with commissioning planned for Q4FY26 and commercial production commencing in Q1FY27, alongside advanced discussions for long-term offtake agreements, marking a pivotal entry into the defence sector; furthermore, a 4.8 MW solar plant, to be commissioned in May 2025, is expected to deliver Rs 2.5 crore in annual savings, with integration at the new plant contributing an additional Rs 2.5 crore, resulting in a total of Rs 5 crore in annual savings and new CNC machines are anticipated to enhance production efficiency and drive significant margin expansion, leading to higher overall profitability.

The company has a market cap of over Rs 400 crore. From Rs 14 (52-week low) to Rs 34.31 per share, the stock gave multibagger returns of 145 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.