10:1 Stock Split: Promoter Sold 1,01,00,000 Shares of This Multibagger Low-Price Sugar Company
The shares of the company have delivered a return of around 520 per cent to its shareholders in just 2 years.
This Small-Cap company established in 1970, manufactures sugar and molasses from sugarcane. They also generate electricity through co-generation and operate a distillery unit. Their production facility in Karnataka has a sugar-crushing capacity of 4750 tons of cane per day (TCD), and their co-generation unit has a capacity of 24.45 megawatts (MW). Additionally, they have a distillery unit with a capacity of 63 kilolitres per day (KLPD).
Earlier the company's board of directors approved a stock split. This means each existing share with a face value of Rs. 10 will be divided into 10 new shares with a face value of Rs. 1 each. To accommodate this split, the company's authorized share capital is being increased.
On Tuesday, shares of Davangere Sugar Company gained 1.45 per cent to Rs 9.82 per share from its previous closing of Rs 9.68 per share. The stock’s 52-week high is Rs 12 while its 52-week low is Rs 6.05.
The company’s largest promoter sold 1,01,00,000 shares on Monday which is June 10. The stock gave multibagger returns of over 600 per cent in 3 years.
As per Quarterly Results in Q4 FY24, the company reported a quarterly revenue from operation of Rs 63.57 crore compared to a revenue of Rs 88.13 crore, representing a de-growth of 28 per cent on a YoY basis. The company posted a net profit of Rs 4.55 crore in Q4 FY24 compared to a net profit of Rs 8.57 crore.
Disclaimer: The article is for informational purposes only and not investment advice.
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