Padam Cotton Yarns Ltd, a textile products company, has turned ex-bonus on Tuesday, March 18, due to its bonus issue which is in the ratio of 2:3. Due to bonus, the stock price has adjusted! Despite this, Padam Cotton Yards is a multi-bagger, giving nearly 920% returns from its 1-year low. Padam Cotton has a strong return on equity. Notably, Padam has turned ex-bonus for the second time in less than 3 months.
Padam Cotton Yarns Share Price:
At the time of writing, Padam Cotton Yards share price traded at Rs 97.85 apiece, up by 0.3% on BSE with market cap of Rs 126.32 crore. The stock is performing near its intraday high of Rs 98 apiece. Adjusted to its bonus issue ratio, Padam Cotton Yards share's 52-week high and low is at Rs 127.56 apiece and Rs 9.61 apiece respectively.
From the current intraday high to its 1-year low, Padam Cotton Yarns stock has rallied by a whopping 919.77%. Its price-to-equity ratio is at 9.52x, while return on equity is at whopping 77.78% as of March 18.
The stock is also near its upper circuit limit of Rs 102.45. Padam Cotton Yarns trade under the XT group on BSE. Its face value is at Rs 10 per share, while earnings per share (EPS) is at Rs 10.28.
Padam Cotton Yarns Bonus Issue:
Padam Cotton turned ex-bonus on March 18, which was also the record date to ascertain the eligibility of Shareholders entitled for Issuance of Bonus Equity Shares of the Company in the ratio of 2:3 i.e. Two (2) Bonus Equity Share of face value of Rs. 10/- each for Three (3) existing Equity Share of face value of Rs. 10/- each.
The bonus issue ratio is of 2:3.
Also, the company's board has approved the issuance and proposed allotment of not exceeding 5164000 Bonus Equity Shares in the ratio 2:3.
This will be the second bonus issue by Padam Cotton Yarns in less than 3 months. Earlier, Padam Cotton issued 1:1 bonus issue and its ex-date was on January 8, 2025.
Bonus shares are one of the many corporate actions that listed companies announce on several occasions. Bonus shares are like incentives which are free of cost given to investors. Under this corporate action, new shares are issued at the existing face value of the company's equity shares. Hence, the face value remains the same post-bonus issue.
Padam Cotton Yarns Share Analysis:
Majority of fundamentals of Padam Cotton Yarns are positive. As per Trendline, the following are key parameters for Padam Cotton Yarns share analysis:
- Price to Earning Ratio is 9.52, lower than its sector PE ratio of 58.82.
- Stock Price rose 624.28% and outperformed its sector by 617.04% in the past year.
The debt to Equity Ratio is zero as the company is debt-free.
- Return on Equity(ROE) for the last financial year was 23.57%, more than 20% in the last financial year, indicating an efficient use of shareholder's capital to generate profit.
- Mutual Fund Holding remained the same in the last quarter at 0%.
- Interest Coverage Ratio is -6.72, lesser than one. This means that it is unable to pay interests with its earnings (EBIT).
- Promoter Pledges are zero.
However, earlier in March, the company's Chief Financial Officer (CFO), Rahul Kumar resigned from his position with effect from March 7, to pursue there other are professional opportunities and no material reasons the resignation other than the one mentioned in the resignation letter.
About Padam Cotton Yarns:
Padam Cotton Yarns Ltd. was incorporated on 2 November, 1994. The Company is engaged in the in the business of manufacturing of all kinds of yarns, trading/marketing of agricultural implements, pumps and motors and also providing consultancy in textile related business. The company has acquired a land on lease for setting up of the project and has started construction, as per Trendlyne.
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