Multibagger Stock Hit 5% Lower Circuit As Board Approves Stock Split

Mena Mani Industries is a micro-cap NBFC that deals in the Financial Services sector. The scrip opened 4% lower on BSE today at Rs 39.90 apiece and clocked a lower circuit of Rs 39.51 during the morning deals with a downside gap of 5%. Heavy sell witnessed in the stock price after the Board on 20th July approves stock split.

"The Members of the Company at their Extra Ordinary General Meeting held on 20th July, 2023 has considered and approved Split / Sub Division of Equity Shares of the Company from existing Face Value of Rs. 10/- (Rupees Ten Only) per Equity Share to 10 (Ten) Equity Shares of Face Value of Re. 1/- (Rupee One Only) per Equity Share," said Mena Mani Industries in a stock exchange filing.

Commenting on the rationale behind the stock split, Mena Mani Industries informed stock exchanges that the corporate action has been taken to enhance the liquidity of equity shares and widen the shareholders base by making the equity shares more economical to the investors. The expected time of completion of stock split is approx 3 months from the date of declaration in the Board Meeting according to Mena Mani Industries.

The company reported revenue from operations of Rs 3.72 Cr in Q4FY23 compared to Rs 0.34 Cr in Q3FY23. Its net profit stood at Rs 0.67 Cr in March 2023 quarter compared to a net loss of Rs 0.04 Cr in the December 2022 quarter. While in FY 22-23, its revenue was Rs 7.06 Cr and net profit reached Rs 0.38 Cr. Mena Mani Industries is yet to declare its Q1FY24 results.

The stock price climbed from Rs 13.96 to the current market price during the past five years, representing a multibagger return of 197%. The stock price soared from Rs 7.90 to the current market price during the past three years, resulting in a multibagger return of 450.28%.

The stock price jumped from Rs. 11 to the current market price in the past year, resulting in a multibagger return of 260%. The stock has posted a multibagger return of 176.29% during the past six months, but a 10.53% drop over the past month.
The stock made a 52-week-high of Rs 45.97 on (14/06/2023) and a 52-week-low of Rs 10.30 on (01/08/2022). During Q1FY24, the company recorded promoter shareholding of 48.33% and public stake of 51.67%.