6:11 bonus shares; 10:1 stock split: High ROE & high ROCE multibagger textile stock at Rs 27.81 hit 10 per cent upper circuit on July 12
The stock gave multibagger returns of 125 per cent in just 1 year, 1,333 per cent in 2 years, and a whopping 7,000 per cent in 3 years.
Today, shares of Lorenzini Apparels Ltd were locked in a 10 per cent upper circuit to Rs 27.81 per share from its previous closing of Rs 25.29 per share. The stock’s 52-week high is Rs 33.02 while its 52-week low is Rs 11.09. The shares of the company saw a spurt in volume by more than 2 times on BSE. The company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces.
Lorenzini Apparels Ltd., established in 2007, designs, manufactures, and markets ready-made garments for men and women through their own "Monteil" brand, offering formal, semi-formal, and casual wear, both in their exclusive stores and online, while also utilising third-party contractors for some garment production. The company has a market cap of Rs 435.75 crore.
Earlier, to make Lorenzini Apparels Ltd stock more accessible to investors and increase its trading activity, the company enacted a stock split and bonus share issuance on March 28, 2024. Existing shares with a face value of Rs 10 were subdivided into 10 shares with a face value of Rs 1 each. Additionally, shareholders on the record date received 6 bonus shares (Rs 1 each) for every 11 existing shares (Rs 10 each) they owned, essentially growing their total shareholding. This manoeuvre also expanded the company's authorized share capital from Rs 11,70,00,000 to Rs 17,30,00,000. The bonus shares received trading approval from both the National Stock Exchange of India (NSE) and BSE Limited (BSE) on April 15, 2024, with trading commencing the following day, Tuesday, April 16, 2024.
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Kiwi Dealcom converted 2,47,230 warrants they held into the same number of company shares, paying a total of Rs 3,74,99,846.4. These warrants, issued in October 2023 at Rs 202.24 each (with a Rs 50.56 upfront payment), required the remaining balance to be paid within 18 months. Kiwi Dealcom exercised its conversion right by paying the remaining dues and receiving the shares. Due to a stock split, the conversion ratio changed from one warrant for one share (Rs 10 face value) to ten shares (Rs 1 face value each). There are still 7,91,141 warrants outstanding that can be converted within their timeframe.
According to the Quarterly Results, the company reported net sales of Rs 9.97 crore and a net profit of Rs 0.32 crore in Q4FY24. The net sales increased by 24 per cent to Rs 54/76 crore and net profit skyrocketed by 110 per cent to Rs 5.30 crore in FY24 over FY23. The stock gave multibagger returns of 125 per cent in just 1 year, 1,333 per cent in 2 years, and a whopping 7,000 per cent in 3 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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