5:1 Stock Split: Penny Stock Under Rs 50 Hit 20 Per Cent Upper Circuit & Fresh 52-week High With Heavy Volume On October 18

5:1 Stock Split: Penny Stock Under Rs 50 Hit 20 Per Cent Upper Circuit & Fresh 52-week High With Heavy Volume On October 18

Kiran Shroff

The stock is up by 95.7 per cent from its 52-week low of Rs 22.28 per share.

On Friday, shares of Abans Enterprises Ltd hit 20 per cent upper circuit to Rs 43.60 per share from its previous closing of Rs 36.35 with a spurt in volume by more than 2.14 times on BSE. The stock also made a new 52-week high is Rs 43.60 and its 52-week low is Rs 22.28.

Abans Enterprises Ltd, established in 1985, is engaged in a diverse range of trading activities. The company deals in agricultural commodities like castor seed and guar gum, precious metals such as gold and silver and various financial instruments including equities, derivatives and currencies, both on exchanges and in the spot market.

According to Quarterly Results, the company reported net sales of Rs 257.22 crore in Q1FY25 compared to net sales of Rs 565.61 crore in Q4FY24. The company reported a turnaround net profit of Rs 4.44 crore in Q1FY25 compared to a net loss of Rs 1.51 crore in Q4FY24, an increase of 392 per cent. In its annual results, the company reported net sales of Rs 1,770.84 crore and net profit of Rs 9.76 crore in FY24.

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The company's board subdivides each existing share having a face value of Rs 10 into 5 shares having a face value of Rs 2 each.  The ratio is 5:1 and the ex-date for the stock split was October 15, 2024.

The shares of the company have a PE of 19.5x whereas the industry PE is 40x. The stock is up by 95.7 per cent from its 52-week low of Rs 22.28 per share. 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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