Fertilizer Stock: 1:2 Stock Split, 7th February Record Date; High-Value Investment?

In India, Rama Phosphates Limited (RPL) is a prominent manufacturer of Single Super Phosphate (SSP) fertiliser. A public limited company, Rama Phosphates Limited has shares listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The Western Indian area, which accounts for 60% of all fertiliser use in India, is where the company's manufacturing facilities in Pune, Indore, Udaipur, and Nimbahera are well situated. With a market value of Rs 364.67 Cr, Rama Phosphates' shares closed Tuesday's trading session on the BSE 0.22% down at Rs 206.60 following the Board's setting of a record date for a 1:2 stock split.

Rama Phosphates Stock Split Record Date

"Pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Company has fixed Friday, 7th February, 2025, as the "Record Date" for the purpose of determining the eligibility of Equity Shareholders of the Company for the purpose of sub-division / split of existing Equity Shares of the Company from Face Value of Rs.10/- (Rupees Ten only) each fully paid-up to Face Value of Rs.5/- (Rupees Five only) each fully paid-up, as approved by the Equity Shareholders through Postal Ballot on Wednesday, 1st January, 2025," said Rama Phosphates in a stock exchange filing.

"The Company being listed and traded on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE), the sub-division/ split of shares is intended to enhance liquidity of the Company's equity shares in the stock market and make the investors. shares By more affordable for small increasing the number of shares available at a lower face value, the Company aims to broaden its shareholder base, encourage retail participation, and improve marketability," Rama Phosphates informed stock exchanges as its rationale behind stock split of existing 1 equity share of the company, having face value of Rs.10/- each, into 2 equity share having face value of Rs.5/- each.

Rama Phosphates News

Recently, on January 9th, Rama Phosphates introduced UROSUPER (Granular), a new product that has been manufactured at the Udaipur Unit with a production capacity of 74000 MTPA under the brand name GIRNAR.

Rama Phosphates Financials

The company's net sales for the September 2024 quarter were Rs 209.46 crore, rising 22.17% from the September 2023 quarter's Rs 171.45 crore. In Q2FY25, its net profit was Rs. 3.08 crore, increasing 361.54% from Q2FY24's Rs. 0.67 crore. EBITDA increased by 80.17% from Rs. 6.05 crore in the September 2023 quarter to Rs. 10.90 crore in the September 2024 quarter.

Rama Phosphates Share Price Target

"Rama Phosphates stock price is bearish on the Daily charts with strong resistance at 217. A Daily close below support of 202 could lead to a target of 189 in the near term," said A R Ramachandran, Independent Research Analyst.

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