Quality microcap stock priced above ₹10,000 zooms 9%

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high-priced stocks. However, when investing in stocks, it is always wise to keep an eye not just on the price of the company’s stock but its value. Although the price of shares is determined by the forces of demand and supply on a day-to-day basis, it is fundamentally a function of the total number of shares issued by a company.

In today’s article, let’s look at a microcap company with a stock price above ₹10,000. Shares of the company spiked around 9% in early trade on 2 November after it posted earnings for the September 2023 quarter. The company in question is in the electrical equipment space – Kaycee Industries.

Incorporated in 1942, it manufactures industrial electrical switches, mechanical counters, electrical components and so on, and has a market cap of ₹735.8 million. It’s a subsidiary of another listed microcap company – Coimbatore-based Salzer Electronics, which acquired 72.32% a stake in it in 2019. Kaycee Industries provides solutions to various industries and sectors including power, panel builders, machine tool manufacturers, telecom, and renewable energy.

It has a manufacturing unit in Vapi. On 1 November, Kaycee Industries posted its earnings for the September quarter. Operating margins remained stable in the double digits, and the company posted marginal growth in its top line and bottom line.

The company has seen revenue and profit increase for the past few quarters Its annual performance isn’t bad either. It posted best-ever numbers in FY23 and has zero debt. The company receives support from Salzer Electronics as both entities operate under a common management and have significant business and financial links.