1:5 Stock Split: One Rs 2,000 Share Of FMCG Company Split Into Five Shares; Check New Price

FMCG stock, Manorama Industries have split into 1:5 ratio. The stock price which was once over Rs 2,000, split into five new shares. Now, Manorama is more cheaper! Stock splits generally improve liquidity and increase demand for a company. It also multiplies the number of shareholdings, however, the valuation does not change.

On BSE, Manorama's share price stood at Rs 399.30 apiece, down by 4.32% with a market cap of Rs 2,379.79 crore. The stock's 52-week high and low are at Rs 479.99 and Rs 198.32 apiece respectively.

Before the ex-split on March 7, Manorama shares traded between Rs 2,000 to Rs 2,100.

Manorama Industries Stock Split:

As per the regulatory filing, the company fixed Friday, March 08, 2024, as the "Record Date" for determining entitlement of Equity Shareholders for sub-division/stock 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 05 (five) equity shares having face value of Rs. 2/- (Rupee two only) each, fully paid-up.

Hence, the stock turned ex-split on March 8. The stock split ratio is 1:5.

But since the market is closed on March 8th due to a trading holiday on the occasion of Mahashivratri.

Manorama Industries Other Factors:

Revenues during 9M FY24 stood at INR 3,277.5 Mn registering a growth of 31.6% YoY. The Company experienced improved realisations and enhanced demand in domestic and export markets of Russia, Latin America, Japan and Europe. EBITDA during 9M FY24 grew by 32% YoY at INR 527.5 Mn; the EBITDA margin for the period stood at 16.1%. PAT during 9M FY24 grew by 39.6% YoY to INR 276 Mn; PAT margin expanded by 48 bps YoY to 8.4%.

About Manorama Industries:

Established in 2005, MIL is a global pioneer in manufacturing speciality fats & butters and exotic products. The Company has carved a niche in manufacturing Sal CBE & Stearin, Shea CBE & Stearin, Mango CBE & Stearin and other exotic fats & butter. MIL offers customized solutions to Fortune 500 companies in chocolate, confectionery and cosmetic industry.

The Company's R&D thrust and quality focus has propelled MILCOA Research & Development Centre laced with several Global certifications. Over the years, the Company has bagged over 50 International and National awards for its unique business model and playing a pivotal role in empowering communities and its contribution to nation-building.

Manorama Industries Outlook:

President of Manorama Industries, Ashish Saraf earlier said, We are actively working to accelerate our growth momentum. Exploring opportunities to deepen our presence in existing geographies, the Company is considering establishing entities in Russia, Latin America, UAE and other markets. Furthermore, leveraging our expertise in the Chocolate & Confectionery industry, we are evaluating diversification into manufacturing real chocolate, super compound slabs, compound chocolate, and specialty cocoa products for both Indian and global markets."

Disclaimer: The write-up highlights about the latest development in stock split, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.