Low PE small-cap stock to keep under radar as Board announces stock split in the ratio 1:2
The stock is up by 31.8 per cent from its 52-week low of Rs 386.95 per share.
Sukhjit Starch & Chemicals Ltd has announced plans to split its existing equity shares from a face value of Rs 10 to Rs 5. This decision was made by the Board of Directors based on the recommendation of the Stakeholders Relationship Committee and is subject to approval from shareholders and relevant authorities. The company believes that this split will enhance liquidity and create value for shareholders. The split will not reduce the company's share capital and is intended to increase the number of shares without altering the total capital value. The proposed change requires approval from shareholders through an ordinary resolution and will necessitate an amendment to the Capital Clause in the company's Memorandum of Association. After the split, the number of equity shares will double to 4,00,00,000, while the face value will be reduced to Rs 5 per share, maintaining the same total capital value.
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Sukhjit Starch & Chemicals Ltd is an Indian agro-processing company established in 1943. Primarily focused on the production of starch and its derivatives, the company is part of the Sardana family and associates. With manufacturing facilities strategically located across North, South, and Eastern India, SSCL boasts a daily maize grinding capacity of 1,600 tons and holds a significant market share in the domestic starch industry. Their product portfolio includes a wide range of starch-based products, catering to various industries such as food, pharmaceuticals, and personal care. SSCL serves a diverse clientele, including major national and international brands, solidifying its position as a leading player in the agro-processing sector.
The company has a market cap of Rs 797 crore and has been maintaining a healthy dividend payout of 22.1 per cent. The shares of the company have a PE of 15x whereas the industry PE is 35x. The stock is up by 31.8 per cent from its 52-week low of Rs 386.95 per share. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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