From Rs 15 To Rs 15,000; After Rs 82/Share Dividend, Multibagger Stock To Pay 4:1 Bonus Shares

After paying hefty dividends earlier in 2023, NBFC firm Kama Holdings is now set to reward its shareholders with bonus issues in the ratio of 4:1. The company has recently fixed its record date to determine eligible shareholders for the bonus shares. Kama Holdings is a multi-bagger and has carried a journey from a mere Rs 15 to currently trading at over Rs 15,000 per share level in a matter of two decades. Not just that, Kama Holdings shares have tasted the success of staying over Rs 16,000 levels too.

The company fixed October 17 as the record date to determine its eligible shareholders for the bonus issue having a face value of Rs 10 each. The 4:1 ratio means that Kama Holdings will issue 4 bonus shares to shareholders on their existing 1 equity share held as of the record date.

Earlier, Kama said that bonus shares will be issued out of free reserves created out of profits and capital redemption reserve of the Company available as of March 31, 2023, which is to the tune of Rs 25,67,24,600. It said that the bonus shares will be dispatched within 2 months from the date of Board Approval i.e. by 31st October, 2023.

In 2023, Kama Holdings has already rewarded investors with a dividend payout of Rs 82 per share in August and of Rs 84 per share in March this year. In FY23 alone, the company paid a dividend of 1660% amounting to Rs 166 per share.

Kama Holdings Limited was formerly known as SRF Polymers Limited and incorporated in March 2000. Two years after its existence, Kama Holdings was listed on BSE and traded at a little over Rs 15 per share in 2002.

As per the data, the stock was just at Rs 15.50 per share in mid-July 2002, and since then it has skyrocketed by an eye-bulging all-time high of 102,534.19% or Rs 15,892.80 on BSE. Such super rise is seen in just two decades of this stock.

The NBFC recorded robust growth in the past five years alone. The stock has rallied by a whopping Rs 10,819.35 or 212.60% on BSE in 5 years. At the latest, its half-yearly gains are around Rs 3,690.25 or 30.25%.

Hence, Kama Holdings has made an exponential journey from Rs 15 to crossing over Rs 15,000 per share, making many investors rich.

Nevertheless, the stock is nearing the Rs 16,000 mark. Last week, on Friday, the stock ended at Rs 15,908.30 apiece, up by Rs 457.50 or 2.96%. The stock touched a 52-week high of Rs 16,800 apiece, before correcting.

The company is a Core Investment Company (CIC). Notably, Kama Holdings is the parent company of listed SRF which is a chemical-based multi-business entity engaged in the manufacturing of industrial and specialty intermediates.

The Company is a Core Investment Company (CIC). SRF Limited is a subsidiary of the Company which is a chemical-based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. It is widely recognized for its R&D capabilities globally, especially in the niche domain of chemicals.

On Trendlyne, Kama Holdings is defined as a mid-range performer which means these stocks are with high durability, but with midrange valuation scores and midrange momentum. These stocks are considered financially durable, but in the middle of the road in terms of how much momentum the stock has in the market, and how expensive it is.

As per Trendlyne, the Relative Strength Index (RSI) and Money Flow Index (MFI) indicators of the stock are in the mid-range of 68.4 and 64.4 respectively. While its 100-day EMA and 200-day EMA are at Rs 13,627.4 and Rs 13,019 respectively. Notably, the stock's TTM PE Ratio and Price-To-Book Ratio are below the industry median at 0.9 and 9.1.

Further, the stock's 1-year Beta is at 0.74, indicating very low volatility.