The start of May is packed with bonus issue rewards and the first up is penny stock below Rs 300, Nidhi Granites. This construction materials maker is going to turn ex-bonus this week for bonus shares in the ratio of 1:1. Last week, the stock froze at its 52-week high and 5% upper circuits to Rs 267.75 apiece.
Nidhi Granites Share Price:
Last week, on Friday, Nidhi's share price struck a 5% upper circuit of Rs 267.75 apiece which is also its new 52-week high. Now, the stock is up by 358% from its 52-week low of Rs 58.50 apiece.
The company's market cap is around Rs 107.10 crore.
Nidhi Granites Bonus Issue:
The company is going to issue bonus shares in the ratio of 1:1 i.e. one new bonus Equity Share of Rs. 10/- each for every one existing Equity Share of Rs. 10/- each held by the shareholders of the Company as on the Record Date.
Accordingly, the company has fixed Thursday, 2nd May 2024 as the 'Record Date' for ascertaining the eligibility of shareholders entitled to issuance of Bonus Equity Shares of the Company.
Bonus shares are free of cost given by listed companies to their existing shareholders from their profitability of respective financial years. In bonus issues, new equity shares are issued by the companies on existing shares in a specific ratio, however, face value remains the same post-bonus.
Nidhi Granites About:
Originally Incorporated in the year 1981, the company was taken over in the year 2021 and is now under the dynamic leadership of Non-Ex Chairman, Devan Narendra Pandya and Managing Director, Darpan Deepak Shah. Initially, the Company was engaged in the granite blocks and tiles business.
In FY23, the company acquired 100% Equity Shares i.e. 10,000 Equity Shares of Face Value Rs. 10/- of Yug Fashion Garments Private Limited on 10th May 2023 and it became a wholly owned subsidiary of the Company. The Company is facing challenges in its core business activities and to deploy its resources productively, the Company has started focusing on the business activities of Trading in Securities.
Fundamentals of Nidhi Granites:
As per Trendlyne data, the following are the fundamentals for the stock analysis of Nidhi Granites:
- Annual Revenue rose 61.04%, in the last year to ₹25.68 Cr. Its sector's average revenue growth for the last fiscal year was 17.28%.
- Annual Net Profit rose 43.45% in the last year to ₹0.44 Cr. Its sector's average net profit growth for the last fiscal year was 81.63%.
- Stock Price rose 275% and outperformed its sector by 202.93% in the past year.
- Debt to Equity Ratio of 0.24 is less than 1 and healthy. This implies that its assets are financed mainly through equity.
- Promoter Share Holding stayed the same in the most recent quarter at 66.75%.
- Promoter Pledges are zero.
- Quarterly Revenue rose 55.7% YoY to ₹10.77 Cr. Its sector's average revenue growth YoY for the quarter was 12.66%.
- Quarterly Net profit rose 271.18% YoY to ₹0.45 Cr. Its sector's average net profit growth YoY for the quarter was -1.64%.
- Price to Earning Ratio is 170.87, higher than its sector PE ratio of 40.01.
- Return on Equity(ROE) for the last financial year was 4.67%, less than 10%, indicating an inefficient use of shareholder's capital to generate profit.
- Interest Coverage Ratio is 6.18, higher than 1.5. This means that it can meet its interest payments comfortably with its earnings (EBIT).
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