2:1 Bonus Issue: Small Cap Finance Stock Soars 119% YTD, Record Date Yet To Be Set

Multibagger stock from the finance sector Paul Merchants Ltd shares gained 2% intraday to hit upper circuit and fresh 52-week high. The stock has been hitting back to back upper circuits and new 52-week high for the last 3 consecutive days. Last trading price of Paul Merchants share BSE is Rs 2790.35 per share today. Paul Merchants shares soared 48% in last 1-month span and gained 119% year-to-date.

Recently, Paul Merchants declared its financial results where it registered a rise of 9.4% in its EPS (earnings per share) to Rs 73.58 for September 2023 from Rs 69.45 announced in September 2022. The company earlier this month on November 9, 2023 announced bonus shares in the ratio of 2:1 implying shareholders will become eligible to receive 2 bonus shares for every 1 share held as on the record date. The record date is yet to be decided by the board of directors of Paul Merchants. Check details below:

Paul Merchants Declares 2:1 Bonus Share: As per the regulatory filing of the company announced on November 9, 2023, "The Board recommended and approved capitalization of Free Reserves and Share Premium account for the purpose of issuance of Bonus Shares to the equity shareholders of the Company in the proportion of 2:1 i.e. 2 (Two) new fully paid-up equity share of Rs. 10/- (Rupees Ten) each for every 1 (One) existing fully paid-up equity share of Rs. 10/- (Rupees Ten ) each held by the shareholders of the Company as on record date, subject to the approval of shareholders."

Paul Merchants Stock Performance & Return Over Years: The stock's 52-week high price is quoted at Rs 2790.35 per share and 52-week low price is Rs 1050.00 per share, respectively. The company has a market capitalisation of Rs 286.85 crore. Paul Merchants shares recorded a jump of 43% in last 3-months, gained 103% in last 1-year, and offered shareholders return of 75% in last 2-years. In last 3-years, Paul Merchants shares surged 116% and declined 21% in last 5-years.

Paul Merchants Financial Results: The company for the quarter ended September 30, 2023 announced its net sales at Rs 1,799.03 crore, up 3.66% from Rs 1,735.59 crore declared in the corresponding period of last year. The company declared its quarterly net profit at Rs 7.56 crore in September 2023, up 5.93% from Rs 7.14 crore announced in the corresponding period of last year. Its EBITDA stood at Rs 11.06 crore for the quarter ending September 2023, up 9.4% from Rs 10.11 crore declared in the same period of September 2022.

Paul Merchants About: The Company is a Public Limited Company with its scripts listed on Bombay Stock Exchange. The Corporate cum Head office of the Company is at Chandigarh. It holds licenses issued by Reserve Bank of India to act as Authorized Dealer Category II and is a prominent Sub-Agent of EBIX Money Express (P) Ltd for providing inbound International Money Transfer services. Further PML is an IATA accredited Travel Agency, according to its official website.

Disclaimer:

The stock just highlights the bonus share and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.