First-Ever Stock Split In 1:10 Ratio: November 09 Record Date, Near Term Target Is Rs 224; Buy?

Motisons Jewellers is a well-known brand in Jaipur. It began as a jeweller in 1998 and promptly became one of the most well-known names in the jewellery industry. The firm provides the finest quality fine jewellery, wedding bands, engagement rings, and Indian diamonds. Motisons Jewellers Ltd.'s market value was Rs 2,828.35 Cr. as of Friday when its shares closed 3.66% higher at Rs 287.30 each on the BSE. On September 20, 2024, the stock hit a 52-week high of Rs 294.00, and on December 29, 2023, it hit a 52-week low of Rs 87.10.

Motisons Jewellers Stock Split

Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) 2015, we wish to inform you that subject to the shareholders' approval to be obtained through postal ballot, the Board of Directors of the company has fixed record date as 'November 09, 2024' for the purpose of sub-division/split of 1 (one) Equity Share of the company having face value of Rs. 10/- each into 10 (Ten) Equity shares of the company having face value of Re. 1 each, Motisons Jewellers said in a stock exchange filing.
The rationale behind the stock split is to enhance the liquidity of company's share and to make it more affordable for small investors and also to broaden the company's investor base.

Motisons Jewellers Authorized Share Capital

"The Board of Directors of the Company at its meeting held on Thursday, September 19, 2024 subject to approval of the Members, approved alteration of Capital Clause (Clause V) of the Memorandum of Association of the Company as below: Clause V: The Authorized Share Capital of the Company is Rs. 125,00,00,000/- (Rupees One Hundred and Twenty Five Crores Only) comprising of Rs. 115,00,00,000/- (Rupees One Hundred and Fifteen Crores only) Equity share capital divided into 115,00,00,000 (One Hundred and Fifteen Crores only) Equity Shares of Re. 1/- each and Rs. 10,00,00,000 (Rupees Ten crores only) Preference Share Capital divided into 1,00,00,000 (One Crore Only) Preference Shares of Rs.10/- each," said Motisons Jewellers in a regulatory filing.

Motisons Jewellers Financials

For the quarter that ended in June 2024, the firm recorded standalone net sales of Rs 88.71 crore, up 2.29% from Rs. 86.73 crore for the same period in 2023. Its net profit jumped by 15.6% from Rs. 5.48 crore in Q1FY24 to Rs. 6.33 crore in Q1FY25. EBITDA declined by 12.21% from Rs. 12.61 crore in June 2023 to Rs. 11.07 crore in the June 2024 quarter.

Motisons Jewellers Share Price Target

"Motisons Jewellers stock price is overbought yet bullish on the Daily charts with the next resistance at 329. Investors should be booking profits at current levels as a Daily close below support of 276 could lead to a target of 224 in the near term," said A R Ramachandran, Independent Research Analyst.