FIIs Increase Stake in Penny Stock Below Rs 20; Shares Hit Upper Circuit, Profit Grows at 217% CAGR
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FIIs raised their stake by 54 per cent as this penny stock below Rs 20 hit the upper circuit, backed by a Rs 100 crore expansion plan and 217 per cent profit CAGR over five years.
✨ Key Takeaways
R M Drip & Sprinklers Systems Ltd share price was locked in the Upper Circuit on Thursday, gaining nearly 5 per cent during the trading session. The rally comes days after the company announced its financial results and disclosed expansion plans through its subsidiary in Maharashtra.
March Quarter Performance
For the quarter ended March 31, 2026, R M Drip & Sprinklers Systems reported standalone net sales of Rs 61.12 crore, registering growth of 27.21 per cent compared with Rs 48.05 crore reported in the corresponding quarter of the previous year.
Quarterly net profit stood at Rs 10.20 crore, marginally lower than Rs 10.25 crore reported in the quarter ended March 31, 2025.
EBITDA came in at Rs 12.94 crore, compared with Rs 15.19 crore in the year-ago period, reflecting a decline of 14.81 per cent.
Subsidiary Signs Maharashtra Investment MoU
In a significant development, Brahmanand Pipes Private Limited, a subsidiary of R M Drip & Sprinklers Systems Ltd, signed a Memorandum of Understanding (MoU) with the Government of Maharashtra during the Kumbha Udyog 2026 – Nashik District Investment Summit.
Under the proposed agreement, the subsidiary plans to invest around Rs 100 crore towards expansion and development activities in Maharashtra. The investment remains subject to necessary approvals, feasibility assesSMEnts and implementation conditions.
The proposed investment is expected to support the company's manufacturing capabilities and strengthen its presence in the irrigation and agricultural infrastructure segment.
Profit Grows at 217% CAGR Over Five Years
R M Drip & Sprinklers Systems has reported strong long-term earnings growth. The company's net profit has increased by more than 200 per cent over the last five years, reflecting improvement in business scale and operational performance.
FII’s Increase Stake
Foreign institutional investors (FIIs) raised their stake in R M Drip & Sprinklers Systems Ltd during the March 2026 quarter. Their shareholding increased from 2.50 per cent as of December 31, 2025, to 3.85 per cent as of March 31, 2026, reflecting a rise of 54 per cent on a quarter-on-quarter basis.
About R M Drip & Sprinklers Systems Ltd
R M Drip & Sprinklers Systems Ltd traces its origins to 1996 when it was established as a partnership firm under the name J K Industries.
The company manufactures micro-irrigation systems and related components used in the agricultural sector. Its product portfolio includes drip irrigation systems, sprinkler irrigation systems and filtration solutions.
Based in Nashik, the company also serves as an original equipment manufacturer (OEM) for several irrigation companies and irrigation sub-assembly manufacturers across the country.
R M Drip & Sprinklers Systems Ltd Share Price Performance
R M Drip & Sprinklers Systems Ltd share price closed at Rs 17.61 and gained Rs 0.83, or 4.95 per cent, during the day. Over the past week, the stock has delivered returns of 7.97 per cent. However, it remains under pressure on a broader timeframe, declining 7.95 per cent in the last month and 64.19 per cent on a year-to-date basis.
Disclaimer: The article is for informational purposes only and not investment advice.