Pharma Stock Below Rs 2 Trading In 4% Upper Circuit On 1:2 Stock Split Move & Strategic Diversification

The shares of Murae Organisor joined the pharmaceutical sector momentum on Monday on D-Street. The stock had strong buying activity, locking in a 4% upper circuit limit at Rs 1.34 per share on the BSE. The company's recent announcements of a stock split and capital expenditures of Rs 250 million for strategic diversification are responsible for the stock rise.

"The Board has approved a 1:2 stock split, subject to shareholder approval. Post the stock split, each equity share with a face value of Rs 2 will be split into 2 equity shares with a face value of Rs 1 each. This stock split is aimed at enhancing the liquidity of the Company's shares in the market and making them more accessible to retail investors," Murae Organisor said in a stock exchange filing recently.

The purpose of this stock split is to improve the market liquidity of the company's shares and make them readily available to individual investors. For the purpose of stock split, the record date will be announced in due course of time.

The proposal to look into the acquisition of agricultural land in Kutch, Gujarat, was authorized by the company's Board of Directors on Monday, May 12. This planned effort is expected to need an investment of between Rs 200 million and Rs 250 million. The plan to explore the purchase of agricultural land in Kutch, Gujarat, is contingent upon receiving the required regulatory licenses, completing the required due diligence, and receiving other statutory clearances.

"The acquired land, upon successful completion of due diligence and all requisite approvals, is proposed to be utilized primarily for cultivating high-quality pomegranates, taking advantage of the region's favorable agro-climatic conditions. Additionally, the Company plans to establish a distillery facility on this site, enhancing operational efficiency and enabling entry into value-added segments, thus potentially diversifying and strengthening the Company's revenue streams," informed Murae Organisor to stock exchanges.

Strategically, the proposal supports a number of beneficial government programs, including the "National Horticulture Mission," "Pradhan Mantri Krishi Sinchai Yojana (PMKSY)," and "Gujarat Industrial Policy 2020," which all work to promote the growth of agriculture, horticulture, and industry.

Murae Organisor Share Price Target

"Murae Organisor stock price is bullish on the Daily charts with strong support at 1.28. A Daily close above resistance of 1.4 could lead to a target of 1.65 in the near term," commented A R Ramachandran, independent research analyst.

Disclaimer

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