1:10 Stock Split, Rs 5/Sh Dividend Soon: Smallcap Textile Stock Hits New High, Jumps 20% In 1-Day After Q1

Sportking India, a smallcap textile stock, touched a new 52-week high on July 22, rising by a whopping 20% in a single day. The performance comes after the company announced Q1FY25 results and double rewards. Sportking is set to deliver a 1:10 stock split ratio and a final dividend of Rs 5 per share for which it fixed the record date.

Sportking India Share Price:

On NSE, during the trading session of July 22nd, Sportking touched its 20% upper circuit of Rs 1,203.10 apiece, which is also its new 52-week high. The stock rose by around Rs 200 in a single day. However, after market hours, investors also booked profits, resulting, in the stock price ending at Rs 1,161.55 apiece, up by 16%.

The company's market cap is at Rs 1,476 crore. YTD, the stock zoomed by over 41% on NSE. In the past month, the stock has rallied nearly 43%.

Sportking India Stock Split:

The company has announced a stock split in the ratio of 1:10. This means a sub-division or split of 1 Equity Share with Face Value of Rs. 10/- each into 10 Equity Shares face value of Rs. 1/- each by altering the Capital Clause of Memorandum of Association subject to Approval of Members in AGM.

Sportking India Dividend:

Further, the company has announced a final dividend of Rs.5/ -per equity share of Rs. 10/- each of the Company for approval by the shareholders at the Annual General Meeting ('AGM).

Last week, the company fixed Saturday 10th August 2024, as the Record Date for determining the entitlement of Members to final dividend for the financial year ended March 31, 2024. That being said, the stock will turn ex-dividend on August 9, which is a trading day.

Sportking India Results:

In Q1FY25, the company posted a net profit of Ts 31.8 Crs - registering a growth of 75.1% YoY & 39.2% Q-o-Q. PAT Margin expanded by 165 bps on a yearly basis and 128 bps sequentially.

While EBITDA for Q1 FY25 was Rs. 73.8 Crs - an increase of 48.3% YoY and 10.0% Q-o-Q. EBITDA Margin for the quarter improved by 66 bps sequentially & 240 bps on a yearly basis to reach 11.6%.

On the top-line front, revenue from operations stood at Rs. 634.0 Crs for Q1 FY25, up 17.7% Y-o-Y and 3.7% Q-o-Q.
Exports contributed 47% in Q1FY25.

While its total production volume stood at 20,311 MT for the quarter v/s 18,455 MT in Q1 FY24. The company also recorded Yarn Sales Volume for Q1 FY25 stood at 19,964 MT v/s 17,396 MT in Q1 FY24, while its Capacity Utilization at 95% for Q1 FY25.

Munish Avasthi, Chairman & Managing Director said, "It was another strong quarter on the operational front as we remain on path to margin recovery. Growth for the quarter was volume led with our production and sales volumes both registering a growth of 10% and 15% year on year, respectively. We strive to maintain a dedicated focus on improving our efficiency and that has resulted in us being able to maintain our peak utilization levels which remain amongst the highest in the industry."

About Sportking India:

Established in 1989, Sportking India Ltd emerged as one of India's leading textile in company & owns 3 state-ofthe-art manufacturing facilities in India equipped with latest machinery, produces yarns that are a benchmark in quality. The company produces well diversified range of grey and dyed textile yarns to cater to the demands of weaving and knitting industry in domestic as well as international markets.