300 per cent returns in this multibagger stock; Board announces bonus shares and stock split!

300 per cent returns in this multibagger stock; Board announces bonus shares and stock split!

Kiran Shroff

300 per cent returns in this multibagger stock; Board announces bonus shares and stock split!

Rudra Global Infra Products Ltd informed that the Board of Directors of the company have approved the issue of equity shares by way of bonus issue in the ratio of 1:1 [i.e., 1 (One) fully paid-up equity share for every 1 (One) equity share] as of record date. Additionally, the Board has approved the proposal of stock split /sub-division of the company's 1 (one) equity share of face value of Rs 10 each into 2 (two) equity shares of face value of Rs 5 each and subsequent alteration to the memorandum of association of the company. The company has not yet set a record date for the distribution of bonus shares or the division of its stock.

After rising nearly 300 per cent over the period of 2 years, shares of Rudra Global Infra Products Ltd are undergoing a correction and have hit the lower circuit for the third straight day. Today, shares of Rudra Global Infra Products Ltd plunged 2 per cent to Rs 123 per share from its previous closing of Rs 125.5. The 52-week high of the stock is Rs 147.70 and the 52-week low of Rs 54.25.

Rudra Global Infra Products Ltd was started in 1991 with a steel re-rolling mill in Gujarat having a capacity of 1000 MT per month. Today, it is engaged in various businesses like ship recycling, oxygen plants, induction furnaces and re-rolling mills producing more than 3 lakh MT per annum of steel.

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Talking about the financials, Rudhra Global has a market cap of Rs 308.56 crore. According to the Quarterly Results, the net sales increased by 43.14 per cent to Rs 138.16 crore, operating profit increased by 10.24 per cent to Rs 9.8 crore and net profit increased by 14.58 per cent to Rs 4.4 crore in Q1FY24 compared to Q1FY23. In FY23, the net sales increased by 28.77 per cent to Rs 452 crore and net profit increased by 75 per cent to Rs 14 crore compared to FY22.

From Rs 92.25 per share to Rs 123 per share, the stock gave multibagger returns of 300 per cent in just 2 years. Investors should keep an eye on this micro-cap stock.

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

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