1:1 bonus share announced after 3:1 rights issue & 10:1 stock split: Low PE & high ROE multibagger penny stock under Rs 5 keep under the radar!

1:1 bonus share announced after 3:1 rights issue & 10:1 stock split: Low PE & high ROE multibagger penny stock under Rs 5 keep under the radar!

Kiran Shroff

The stock gave multibagger returns of 150 per cent in just 1 year and a whopping 535 per cent in 3 years.

Franklin Industries Limited provides financial services. The company offers real estate services, as well as trading of various commodities, equities, gems, jewellery and textiles. Franklin Industries serves customers in India.

bonus Update: Bonus issue of equity shares in the ratio of 1:1 i.e., 1 equity share of Rs 1 each for every 1 equity share of Rs 1 each held by the shareholders of the company as on the record date. The board fixed the record date for bonus shares as Monday, September 09, 2024.

Rights Issue & stock split Updates: The shares of the company ex-traded rights issue in the ratio 3:1 and stock split/sub-division of 1 equity share of the face value of Rs 10 each fully paid up into 1 equity share of Rs 1 each fully paid up, resulting in the issuance of 10 equity shares of Rs 1 each fully paid up, thereby keeping the paid-up capital intact. The ex-date for the rights issue was May 13, 2024 and for the stock split was January 11, 2023.

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Results: According to Quarterly Results, the net sales increased 263 per cent to Rs 26.63 crore and net profit increased by 840 per cent to Rs 5.65 crore in Q1FY25 compared to Q1FY24.

After nearly rising 150 per cent in 1 year, shares of Franklin Industries Limited have been hitting the lower circuit for the 5th consecutive day. On Wednesday, shares of Franklin Industries Ltd plunged 2 per cent lower circuit to Rs 4 per share from its previous closing of Rs 4.08. The 52-week high of the stock is Rs 8.26 and the 52-week low of Rs 1.67.

The company has a market cap of Rs 57.84 crore. The shares of the company have a PE of 4x whereas the industry PE is 39x with an ROE of 112 per cent and an ROCE of 120 per cent. As of June 2024, 100 per cent stake is owned by the public. The stock gave multibagger returns of 150 per cent in just 1 year and a whopping 535 per cent in 3 years.

Disclaimer: The article is for informational purposes only and not investment advice.   

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