7:10 Bonus Shares Declared: Record Date In Due Course; SL Is At Rs. 54, What’s Target?

In terms of non-woven fabrics, non-woven carpets, non-woven felts, non-woven designer carpets, and non-woven geotextiles, Indo Cotspin is an exporter, manufacturer, importer, trader, and supplier. The firm was founded in 1955, and the company has declared bonus shares for the first time since its inception. The company's shares wrapped up at Rs 92.24 each on the BSE on Friday, with a market value of Rs 39 Cr.

Indo Cotspin Bonus Shares

The Board of Directors have considered and approved, "Issue of 29,40,350 (Twenty-Nine lakh Forty Thousand Three Hundred Fifty) Bonus equity shares in the ratio of 07:10 i.e. 07 (Seven) fully paid-up equity share for every 10 (Ten) existing equity share having face value of Rs. 10/- (Rupees Ten only) each, held by the members of the Company as on Record Date, subject to necessary approvals as may be required," said the company in a stock exchange filing.

Indo Cotspin Q1 Results

The company reported a net revenue of Rs 3.07 crore in the June 2024 quarter down 5.15% from Rs. 3.24 crore in June 2023 quarter. A net profit of Rs. 0.10 crore was reported in Q1FY25, a 159.11% rise compared to Rs. 0.04 crore in Q1FY24. EBITDA climbed 17.39% from Rs. 0.23 crore in the year-ago quarter to Rs. 0.27 crore in June 2024.

Indo Cotspin Share Price Target

"Textile-spinning sector player Indo Cotspin Ltd.'s stock has displayed growth over the last year, with its price surging by nearly 131.3%, highlighting the micro-cap company's resilience and potential. The stock has also tripled in value over the last year, garnering the attention of market participants. However, its current price of Rs. 93 is likely to correct and dip to the 60-70 range, which could act as a dip buying range for those interested. To elaborate, its PE ratio stands at 311.3 against the sector PE of 0.46, and its current P/B ratio stands at 5.84, suggesting high overvaluation compared to the broader sector. Those seeking growth opportunities in the micro-cap segment could consider this textile stock and explore the buying range of Rs. 60-70. They can set a price target of Rs. 90-115 for this stock for 1-6 months. However, I would advise caution due to its high valuation. To cushion the risk and impact of potential volatility, I recommend setting a stop loss of Rs. 54 for this stock," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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