1:1 Bonus, 2:1 Stock Split: Record Date on Dec 20; Should You Buy This Small-Cap Gem with 177% 5Y Returns?

Linc Ltd., a major small-cap player in the printing and stationery industry, has made a significant announcement regarding its equity structure. On 29th October the company approved the subdivision of its stocks and the issue of bonus shares in a move aimed at improving liquidity and rewarding its shareholders. Recently, the company disclosed the record date for the same through an exchange filing dated December 7, 2024.

As per the filing, the company's board has finalized December 20, 2024, as the record date for the sub-division (stock split) of its equity shares. Each equity share with a face value of Rs. 10 will be divided into two equity shares with a face value of Rs. 5 each, fully paid up.

In addition to the stock split, Linc Ltd. has also announced a bonus issue of shares in a 1:1 ratio. Under this scheme, shareholders will receive one additional fully paid-up equity share of Rs. 5 for every one existing equity share of Rs. 5.

Linc Latest Share Price Movements

Linc Ltd.'s share price closed at Rs.637 on December 6, 2024, reflecting a minor decline of 0.11% during the day. Despite this dip, the stock has shown 0.28% growth over the past week, indicating steady investor interest.

Over the past month, the stock faced some volatility, resulting in a cumulative decline of 0.78%. However, its 6-month performance remains strong, with an 8.75% rise. On a year-to-date basis, the stock has dropped by 5%, reflecting broader market conditions.

Long-term investors have benefited significantly, with the stock delivering a remarkable 177% return over the last five years. Listed on the National Stock Exchange in December 2021 at Rs.229, the stock has climbed steadily, reaching a 52-week high of ₹768 and a 52-week low of Rs.463.

The recent announcement of the stock split and bonus issue is expected to generate increased trading activity and investor interest in the coming weeks.

Linc Ltd Financial Performance in Q2 FY 2024-25

Linc Ltd. has posted strong financial performance for the July-September quarter of FY2024-25. The company reported a revenue of Rs.137.28 crore, marking a year-on-year (YoY) growth of 4.62%. Net income for the quarter came in at Rs. 8.79 crore, with a YoY increase of 14.03%. In the September 2024 quarter, net sales rose to Rs. 134.64 crore, a 2.61% increase compared to Rs. 131.22 crore in the same period of the previous year. Net profit climbed to Rs. 8.78 crore in Q2 FY 2024-25 from Rs. 7.71 crore in Q2 FY 2023-24, representing a significant YoY growth of 13.91%. Moreover, the company's EBITDA grew by 9.86%, reaching Rs. 15.94 crore.