Multibagger Stock Okays 1:2 Bonus Shares After Gaining 105% YTD: Do You Own?

In the textile industry, SBC Exports Ltd. is a small-cap company with a market capitalization of Rs 660 Cr. At its registered office in Mirzapur, the firm trades handcrafted carpets, cushion covers, cotton quilts, bedspreads, and other products. SBC Exports is one of the multibagger stocks that Dalal Street market observers have recently seen; the scrip climbed by 105% YTD in 2023. However, what's fascinating about the stock is that the company's Board of Directors has announced bonus shares for its eligible shareholders.

SBC Exports Bonus Shares

"We wish to inform you that the Board of Directors of the Company at its meeting held on Tuesday, 5th December, 2023 has considered, recommended and approved the Issue of Bonus Shares in the ratio of 1:2 i.e., 1 Equity Share for every 2 equity shares held by the existing equity shareholder of the Company as on Record Date to be fixed in the meantime.

The bonus issue of equity shares is subject to the approval of the shareholders through Postal Ballot, and any other applicable statutory and regulatory approvals, as may be required. The Bonus shares once allotted shall rank pari-passu in all respects and carry the same rights of the existing Equity Shares and shall be entitled to participate in full in any dividend and other corporate action, recommended and declared, if any, after the issue and allotment of such Bonus Shares," said SBC Exports in a stock exchange filing.

SBC Exports Financials

In the September 2023 quarter, the firm recorded consolidated net sales of Rs. 35.22 crore, a 4.56% drop from the September 2022 quarter's Rs. 36.90 crore. It disclosed a consolidated net profit for Q2FY24 of Rs. 2.17 crore, up 35.77% from Q2FY23's Rs. 1.60 crore. In the second quarter of the current fiscal year, its EBITDA was Rs. 3.96 crore, an 80% increase over the equivalent period of the previous financial year when it was Rs. 2.20 crore.

SBC Exports Share Price History

On Thursday, the shares of SBC Exports were trading 0.32% lower at Rs 31.05 apiece while writing this copy. The scrip reached a 52-week-high of Rs 35.04 on (24/11/2023) and a 52-week-low of Rs 13.50 on (12/12/2022), indicating that at the current market price of Rs 31.05, the stock is trading at a discount of 11.38% from its 1 year high and has gained 130% from its 1 year low.

The stock price climbed from Rs 1.20 to the current market price during the previous five years, resulting in a multibagger return of 2,722.73%, while the scrip has advanced from Rs 2.12 to the current market price over the last three years, culminating in a multibagger return of 1,357.75%. Having a multibagger return of 93.46% in the past year, the stock price jumped from Rs 16.05 to the current market price. Year-to-date, the stock price gained from Rs 15.10 per share to the current market price, resulting in a multibagger return of 105.63% so far in 2023.