Multibagger from its 52-week low; Board announced stock split!

The stock is up by 97 per cent in just 1 year whereas BSE Sensex Index is up by 11.27 per cent.

Ravalgaon Sugar Farm Ltd informed that the Board of Directors of the company approved a sub-division / stock split in the ratio of 1:5 i.e., existing 1 equity share of the company having face value of Rs 50 each, fully paid-up, will be sub-divided into 5 equity shares having face value of Rs10 each, fully paid-up, subject to the approval of shareholders at the ensuing Annual General Meeting (AGM) of the company. The record date for the sub-division of equity shares shall be decided after approval of the shareholders of the company (approx. 3 months from AGM).

The Ravalgaon Sugar Farms Ltd manufactures confectioneries like hard-boiled sweets and toffees and caters to the general trade and modern trade markets. The company has a market cap of Rs 34.4 crore with a 3-year stock price CAGR of 42 per cent.

As of June 2023, the promoters of the company own a majority stake of 53.31 per cent, followed by DIIs with a 0.05 per cent stake. The remaining 46.64 per cent of the shares are held by the general public.

On August 28, 2023, shares of Ravalgaon Sugar Farm Ltd plunged 266.2 points or 5 per cent lower circuit to Rs 5,058.40 per share from its previous closing of Rs 5,324.60 (Currently the stock is not trading on the exchange). The shares of the company saw a spurt in volume by more than 1.82 times on BSE. The stock’s 52-week high is Rs 6,153.75 and its 52-week low is Rs 2,490.05.

The stock gave multibagger returns of 105 per cent from its 52-week low of Rs 2,490.05 per share. The stock is up by 97 per cent in just 1 year whereas BSE Sensex Index is up by 11.27 per cent. Investors should keep an eye on this micro-cap stock.

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