1:5 Stock Split: Buy The Chemical Stock Ahead Of Record Date On March 22, Friday?

As of Thursday's closing session, Refex Industries Limited has a market capitalization of Rs 1,461.66 Cr, making it a small-cap company in the chemical industry. Following the announcement of the record date for the stock split by the Board of Directors, Refex Industries' shares closed at a 5% upper circuit limit of Rs 660.30 per share.

Refex Industries Limited (RIL) is an expert producer and refiller of refrigerant gases in India, specialising in eco-friendly gases that substitute chlorofluorocarbons (CFCs). Refex Industries is one of the multibagger stocks of the recent past; in only one year, the company generated a multibagger return of 155.53%, and it has gained 4.54% year to date.

Refex Industries Stock Split Record Date

"Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Company has fixed Friday, March 22, 2024 as the Record Date for determining entitlement of Equity Shareholders for the purpose of sub division/ split of existing Equity Shares of the Company, such that 1 (one) equity share having face value of Rs. 10/- (Rupees ten only) each, fully paid up, will be sub divided into 5 (five) equity shares having face value of Rs. 2/- (Rupees Two only) each, fully paid up, ranking pari-passu in all respects which was approved by the Equity Shareholders through Postal Ballot on March 1, 2024. The voting results of the Postal ballot has been intimated to the Stock Exchanges on March 2, 2024," said Refex Industries in a regulatory filing on March 07, 2024.

According to Refex Industries, the rationale behind the stock split is to improve the liquidity of the company's Shares in the stock market and to make it more affordable for the individual retail investors and also to widen shareholder base.

Refex Industries Financials

The company reported a net sales of Rs 301.51 crore in the December 2023 quarter down 20.74% from Rs. 380.40 crore in the December 2022 quarter. Its net profit stood at Rs. 19.78 crore in Q3FY24 down 24.38% from Rs. 26.15 crore in Q3FY23. EBITDA reached Rs. 36.88 crore in the reporting quarter down 9.98% from Rs. 40.97 crore in the same quarter of the previous fiscal.

Refex Industries Share Price Target

Refex Industries is bullish on the Daily charts with strong support at 631. A daily close above resistance of 685 could lead to a target of 750 in the near term, said AR Ramachandran from Tips2trades.

Disclaimer

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