Bonus shares are lucrative for investors in the sense that for them all future corporate actions apply though the investment value of shareholders remain the same as before the bonus share issuance.
Notably as there is earnings season going on, one of the textile company MK Exim which is traded only on the BSE has in its meeting held on December 21, 2021 informed to the exchange that the board has recommended the issue of bonus shares in the proportion of 2 shares of Rs. 10 each for every 1 share of Rs. 10 each held by the shareholders of the company as on the record date, subject to the approval of members and other approvals.
Record date for ascertaining eligibility of shareholders
Subsequently to the proposal, the company in its filing on January 28, 2022 has fixed and announced the record date as February 7, 2022 for the bonus share issuance.
In the September ended quarter of Fy22, the company's income from operation has been at Rs. 14.82 crore higher on a YoY basis, but a fall sequentially. Nevertheless, the company posted net profit of Rs. 3.18 crore, higher than the June ended quarter figure of Rs. 2.46 crore. In the same quarter of the previous year, the company's net profit has been at Rs. 1.57 crore, so profit almost doubled in the review period.
Other important plus points of the scrip
The company is virtually a debt free entity with Debt to equity as in 2021 at 0.07
The company has posted a good profit growth of 220.25% over the Past 3 years.
The company has shown a good revenue growth of 41.94% for the Past 3 years.
Also it is a company with a high TTM EPS growth
The stock's 1-year return is of 1060%, while its 3-months return are at 199.25%
About the company
MK Exim (India) Limited is a growth oriented business enterprise with operations and expansion projects in multiple domains. The company has manufacturing facilities for fabric, readymade garments and jewellery; and also is an approved supplier for Relief Programs.
The stock mentioned in the story is for information use and should not be interpreted as investment advice. Investments in equity is risky so take a cautious approach.