1:5 Stock Split: 405% Gain In 1 Year, Record Date In Due Course: Bet?

With a market valuation of Rs 617.04 Cr, Remsons Industries Ltd is a small-cap company in the consumer discretionary category. Over the past 50 years, Remsons has been a pioneer in the production of automobile parts. Providing top-notch products such as gear shifters, control cables, winches, jacks, pedal boxes, and so on. Remsons Industries is one of the Dalal Street multibagger stocks of recent times, having returned 405% in a year and 160% in six months. What's more intriguing, though, is that the firm recently announced a stock split in order to improve the liquidity of its shares and to make it more affordable for small investors.

Remsons Industries Stock Split

The Board of Directors "Approved sub-division / split of the Company's Equity Shares - 1 (one) Equity Share of the Company having face value of Rs. 10/- each fully paid up into 5 (five) Equity Shares of the Company having face value of Rs. 2/-each fully paid up, subject to approval of the members of the Company and such other regulatory / statutory approvals, as may be required. The record date for sub-division / split shall be intimated to the Stock Exchanges in due course," said Remsons Industries in a regulatory filing on 27th February, 2024.

"To amend the existing Capital clause (Clause V) of Memorandum of Association of the Company, to give effect of the sub-division / split of Equity Shares as follows: The Authorized Share Capital of the Company is Rs. 12,00,00,000/- (Rupees Twelve Crore only) divided into 6,00,00,000 (Six Crore) Equity Shares of Rs. 2/- (Rupees Two only) each," the company further stated.

Remsons Industries Financials

On a consolidated basis, the company reported net sales of Rs 82.22 crore in the December 2023 quarter up 8.78% from Rs. 75.59 crore in the December 2022 quarter. Its net profit stood at Rs. 3.41 crore in Q3FY24 up 66.28% from Rs. 2.05 crore in Q3FY23. Its EBITDA reached Rs. 9.46 crore in the recent quarter up 33.24% from Rs. 7.10 crore in the same quarter of the previous fiscal.

On a standalone basis, Remsons Industries booked revenue from operations of Rs 70.33 crore in the December 2023 quarter up 6.94% from Rs. 65.76 crore in the December 2022 quarter. Its quarterly net profit on a standalone basis stood at Rs. 3.67 crore in Q3FY24 up 37.34% from Rs. 2.67 crore in Q3FY23 whereas EBITDA reached Rs. 8.45 crore up 28.22% from Rs. 6.59 crore in the same quarter of the previous financial year.

Remsons Industries Share Price Target

Remsons Industries is overbought & bearish on the daily charts with next resistance at 1126. A daily close below support of 1040 could lead to a target of 904 in the near term, said AR Ramachandran from Tips2trades.

Disclaimer

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