1:10 Stock Split Record Date After Ambedkar Jayanti: Zero-Debt NBFC Stock Beats Sensex, Rises 45% YTD

Kapil Raj Finance Ltd is a NBFC company trading as a penny stock on BSE. In the coming trading week, the share is going to split in the ratio of 1:10. Currently, the price is below Rs 70. YTD, the stock has skyrocketed by more than 45% despite market volatility, beating Sensex. Here are the key fundamentals of Kapil Raj Finance:

Kapil Raj Finance Share Price:

Last Friday, the stock price closed at Rs 68 apiece on BSE, down by 2.9%, with a market cap of Rs 74.39 crore. However, the stock is near its 52-week high of Rs 78.99 apiece and has given multi-fold returns compared to its 52-week low of Rs 18.47 apiece.

YTD, Kapil Raj Finance's share surged by at least 45.30%, outrunning the Sensex, which dipped by over 4% in the same period. The NBFC became a multi-bagger on year-on-year performance, with the upside of a whopping 240%. In the long run, Kapil Raj Finance rallied by a whopping 1,579.01%. Five years ago, the stock was merely at Rs 4.05.

Kapil Raj Finance Share Fundamentals:

As per Trendlyne data, the positive factors of the stock are --- Debt to Equity Ratio is zero as the company is debt-free; Mutual Fund Holding remained the same in the last quarter at 0%; Promoter Pledges are zero.; Stock Price rose 248.18% and outperformed its sector by 242.12% in the past year; and Quarterly Net profit rose 494.33% YoY to ₹0.06 Cr. Its sector's average net profit growth YoY for the quarter was 15.36%.

However, among the drawbacks are --- Price to Earning Ratio is 10,776.55, higher than its sector PE ratio of 19.64; and Return on Equity(ROE) for the last financial year was -0.12%, less than 10%, indicating an inefficient use of shareholder's capital to generate profit.

Kapil Raj Finance Stock Split:

The NBFC player has scheduled Tuesday, April 15, 2025, as the record date for its upcoming stock split in the ratio of 1:10. The split ratio means sub-division /split of every 1 (One) Equity Share having face value of Rs. 10/- (Rupees Ten Only) each, fully paid-up into 10 (Ten) Equity Shares having face value of Re. 1/- (Rupee One Only) each fully paid up.

That being said, the ex-split date will also be on April 15 for Kapil Raj shares. Notably, the market will be closed on Monday, April 14 due to the celebration of Ambedkar Jayanti.

What is a stock split?

A stock split is carried out by listed companies, where shareholders already owned shares are subdivided into smaller shares. The ratio at which a stock will split depends upon the company, and it varies accordingly. One of the main objectives of a stock split is to improve liquidity by the stock into smaller size, which makes it affordable for both new and existing customers. The face value reduces in a split action, however, there is no impact to share capital reserves.

Advantages of Stock Split:

Here are some of the key advantages of stock split, as per Religare Broking's website:

- A company might have a standard lot size for investors. Investors must purchase a minimum number of shares based on the lot size. However, investors find it difficult to purchase the standard lot when share prices rise significantly. In such a case, a stock split makes the standard lot more affordable for investors. Investors who could not purchase shares of a company due to high prices can afford them after a stock split.

- It is crucial to note that a stock split also results in increased liquidity. Since stocks become more affordable after a split, more investors might be interested in trading. A stock split might also narrow the bid-ask spread in the market. Many companies depend on a stock split to attract new investors. When a stock becomes affordable after a split, it might lead to renewed investor interest in the stock market Also, there is no impact on the portfolio value of existing shareholders after a stock split. As you can see, stock splits benefit both the issuing company and potential investors.