Finance Stock Declares First Ever 2:1 Bonus Shares After Surging 147% YTD: Do You Own?

Paul Merchants Ltd. is a small-cap firm in the finance industry, and as of Friday, its market valuation was registered at Rs 330 Cr. The company's head office is located in Chandigarh. As a well-known Sub-Agent of EBIX Money Express (P) Ltd, the company is licenced by the Reserve Bank of India to operate as an Authorised Dealer Category II and offers inbound international money transfer services. The company got listed on BSE on 21-04-2015 and after 8 years of listing it has declared first ever bonus shares of 2:1.

"This is for your information that pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read over with applicable provisions of the Companies Act, 2013, the Company has fixed Monday, December 18, 2023 as Record Date for the purpose of ascertaining the eligibility of equity shareholders entitled for allotment of Bonus Shares of the Company in the ratio of 2:1, i.e. 2 (Two) equity shares of Rs. 10/- each for every 1 (one) existing equity share of Rs. 10/- each," said Paul Merchants in a stock exchange filing.

In the September 2023 quarter, the company's net sales were Rs. 1,839.25 crore, which is a 4.42% growth from Rs. 1,761.42 crore in the same quarter of 2022. Its net profit increased by 21.36% from Rs. 11.97 crore in Q2FY23 to Rs. 14.53 crore in Q2FY24. EBITDA increased by 49.93% from Rs. 20.81 crore in the same period of FY23 to Rs. 31.20 crore in the second quarter of FY24.

On Friday, the shares of Paul Merchants closed at a fresh 52-week-high of Rs 3205.10 apiece up by 2.00% from the previous close of Rs 3142.30. The scrip reached a 52-week-low of Rs 1,050.00 on (03/04/2023) indicating that the stock has gained 205.24% from its 1-year-low. In the last 1 year, the stock has generated a multibagger return of 138.88% and on a YTD basis, it has gained 146.64% so far in 2023. During Q2FY24, Paul Merchants the company recorded promoters shareholding of 74.66% and public stake of 25.35%.