Industrial products maker, Harshil Agrotech is a penny stock listed on BSE. Surprisingly, this stock has not seen a single seller since 2023, and in 12 months, it has skyrocketed nearly 2,090%. In 2024 alone so far, the stock has zoomed by 1,202%, making it among the top multibaggers in the penny stocks basket. Harshil's share has journeyed from merely Rs 2.5 levels to over Rs 55. Due to the sharp rise, the company has decided to split its shares for the first time in the ratio of 1:10. This is alongside the company's plan to fundraise.
Hashil Agrotech Share Price:
On BSE, the stock price stood at Rs 55.61 apiece, up by 2% with a market cap of Rs 60.06 crore. The penny stock has been in green throughout since 2023.
At the start of 2024, the stock was around Rs 4.27 apiece on BSE, and it rallied by 1,202.34% as of September 4, 2024. Further, the stock was at a meagre Rs 2.54 a year ago, and since then has skyrocketed by 2,089.37%.
In 5 years, the stock zoomed by a whopping 10,594.23%.
Despite outperforming its sector in the past year, Harshil's price-to-equity ratio is lower than compared to its sector. However, the stock is overvalued since its price-to-book ratio is above 1x to 3x and is currently at 5.26x.
As per Trendlyne data, key fundamentals of the stock are - Debt to Equity Ratio of 0.06 is less than 1 and healthy, implying that its assets are financed mainly through equity; Price to Earning Ratio is 45.78, lower than its sector PE ratio of 64.56; Stock Price rose 2,197.93% and outperformed its sector by 2,113.72% in the past year; Promoter Pledges are zero; and Interest Coverage Ratio is 3110.54, higher than 1.5. This means that it can meet its interest payments comfortably with its earnings (EBIT).
However, the data also revealed that its Return on Equity(ROE) for the last financial year was 7.02%, less than 10%, indicating an inefficient use of shareholder's capital to generate profit.
Accordingly, a stock split will improve the company's liquidity, and its share will become cheaper for both new and existing customers.
Harshil Agrotech Stock Split:
The company has recommended a Sub-Division of 1 (one) Equity Share of the face value of Rs. 10/- (ten) each fully paid up into 1 (one) Equity Share of Rs. 1/- (one) each fully paid up, resulting in issuance 10 (ten) Equity Shares of Rs. 1/- (one) each fully paid up, thereby keeping the paid up capital intact.
Hence, the stock split ratio is at 1:10.
Harshil Agrotech Fundraising:
Also, the company's board has approved fundraising by way of issuance of equity shares of the face value of Rs.10/- each of the Company to its eligible equity shareholders on a rights basis ("Rights issue") for a value not exceeding Rs. 49,50,00,000/- (Rupees Forty Nine Crore Fifty Lakhs Only), subject to receipt of necessary approvals from regulatory authorities, as applicable and by applicable provisions of the Companies Act, 2013, as amended, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, and other applicable laws.
Further, the Board has constituted a Rights Issue Committee and authorized its members to decide on the terms and conditions of the Issue, including but not limited to, the final Issue size/amount, rights entitlement ratio, the issue price, record date, timing of the Rights Issue, approval of draft letter of offer; appointment of intermediaries, if required; allotment of shares and other related matters.
About Harshil Agrotech:
Harshil Agrotech Limited was formerly incorporated as Mirch Technologies (India) Limited on November 18, 1972. The Company name was changed to Harshil Agrotech Limited from Mirch Technologies (India) Limited on September 11, 2023. The Company is into the activities of industrial design and fabrication. The Company has been covering various industries like fertilizers, chemicals, petrochemicals, power plants, fibres, cement, steel plants, pharmaceuticals, dyes and intermediates, paper and pulp and other allied processing industries since its inception. However, in 2023, the Company Changed its Object Clause and the New object of the Company is to Trading and Manufacturing of Agro and Its Related products, as per ICICI Direct data.
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