Multibagger penny stock below Rs 10 with 700 per cent returns; Board announces consolidation of equity shares!
The stock gave multibagger returns of 170 per cent from its 52-week low of Rs 3.55 per share and a whopping 700 per cent in 5 years.
Kaushalya Infrastructure Development Corporation Ltd informed that the Board of Directors of the company has approved the consolidation of face value of equity shares of Rs 10 each to Rs 1,000 each. The company fixed the record date as Friday, January 12, 2024.
What is consolidation of shares?
Imagine a company with too many marbles scattered across the floor. Consolidation of shares is like gathering those marbles, combining them into fewer, but bigger ones. This reduces the total number of marbles while making each one individually more valuable. In the stock market, this translates to a company merging several existing shares into a smaller number of shares with a proportionally higher price. This action, also called a reverse stock split, aims to boost the company's perceived value and attract investors. Before taking this step, the company will notify its shareholders to ensure transparency and understanding.
About the company: Incorporated in 1992, Kaushalya Infrastructure Development Corporation Ltd is engaged in executing construction contracts relating to infrastructure, real estate developments, acquisition and development, and sale of land. The company is also engaged in operating hotels.
The company has a market cap of Rs 33.21 crore and has delivered good profit growth of 80 per cent CAGR over the last 5 years. The company reported positive numbers in its Quarterly Results and annual results.
The shares of the company are trading at 0.56 times its book value of Rs 16.8. Today, shares of Kaushalya Infrastructure Development Corporation Ltd hit a 2 per cent lower circuit to Rs 9.59 per share from its previous closing of Rs 9.78. The stock’s 52-week high is Rs 10.52 and its 52-week low is Rs 3.55.
The stock gave multibagger returns of 170 per cent from its 52-week low of Rs 3.55 per share and a whopping 700 per cent in 5 years.
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