1. At a Glance – The Plot Twist Nobody Asked For
Ladies and gentlemen, welcome to the Indian stock market — where a company grows profits by 105%, improves margins to 25% OPM, runs almost debt-free, expands globally to 70+ countries, and still gets slapped with a -50% stock return in 1 year.
Meet Rajoo Engineers — a company that literally builds machines that make plastic… but somehow, investors decided to treat the stock like plastic waste.
This is not your typical “small-cap hope story.” This is a profit machine disguised as a neglected stock, sitting at a P/E of 15 while peers are partying at 50–100 P/E.
And just when you think things are boring, boom —
- ₹160 Cr QIP
- 60% acquisition of Kohli Printing
- Order book rising
- Margins exploding
- And suddenly… a full-blown transformation into an end-to-end packaging machinery powerhouse
So the real question is:
👉 Is this a hidden gem quietly compounding?
👉 Or a capital goods trap waiting for the next slowdown?
Let’s investigate like a slightly suspicious auditor who smells both opportunity… and drama.
2. Introduction – The Underrated Machinery Mafia
Rajoo Engineers has been around since 1986, which in Indian corporate terms means:
👉 Old enough to have seen license raj
👉 Young enough to still chase growth
They manufacture plastic extrusion machinery — basically machines that create packaging materials used in everything from biscuit packets to solar sheets.
Not sexy. Not glamorous. But highly profitable if done right.
Now here’s where it gets interesting:
- They export to 70+ countries
- They have 5000+ installations globally
- Around 50% revenue historically from exports
This is not a “local Gujarat company” anymore. This is a global mid-sized engineering player.
And the biggest kicker?
👉 Repeat orders = ~60% of business
Meaning customers don’t just buy once — they come back again. That’s not a business… that’s addiction.
But then comes the twist…
Despite all this:
- Stock crashed ~50%
- Promoter holding dropped from ~66% to ~60%
So…
👉 Is the market smarter than the company?
👉 Or just drunk on momentum stocks?
3. Business Model – WTF Do They Even Do?
Let’s simplify this for the “I don’t read annual reports” investor.
Rajoo Engineers makes machines that help companies produce:
- Plastic packaging films
- Industrial sheets
- Thermoformed products
- Pipes & extrusion products
Basically…
👉 If you’ve ever opened a biscuit packet, shampoo sachet, or milk pouch…
👉 Somewhere in that supply chain, Rajoo might be chilling quietly.
Now here’s the genius part:
They don’t just sell machines.
They sell:
- Custom solutions
- High-margin engineered systems
- Long lifecycle products
And with the Kohli Printing acquisition, they now cover:
👉 Extrusion → Printing → Laminating → Converting
Translation:
👉 Earlier: “We sell machines”
👉 Now: “We sell the entire factory setup”
That’s
