Multibagger penny stock under Rs 10; Board announces 1:1 bonus shares after a decade!

The stock is up by 70 per cent from its 52-week low of Rs 5.73 per share and gave multibagger returns of over 160 per cent in 3 years.

Kanani Industries Ltd informed that the Board of Directors considered, approved and recommended the issue of bonus shares to members of the company by the capitalization of its reserve in the ratio of 1:1 (1) bonus share of Rs 1 each fully paid for every 1 existing share of Rs 1 each fully paid upheld by the members as on a record date to be fixed by the Board thereof for the purpose. While the company hasn't yet announced a specific record date for the bonus share issue, it's estimated to be within two months of the approval date, which is February 7, 2024.

In October 2023, the company announced that it had secured export orders worth approximately Rs 20 crore from its esteemed international clients. These orders are for the manufacturing of jewellery and will be fulfilled using the company's in-house, backward-integrated manufacturing facility. This is expected to improve the company's profit margins. The company aims to deliver the orders within 6 months.

In 2013, the company rewarded its investors with a generous 1:10 bonus share issue. Prior to that, in another shareholder-friendly move, the company had split its shares, reducing the face value from Rs.5 to Rs.1 in 2012. This commitment to shareholder value through both bonus shares and stock splits demonstrates the company's focus on rewarding its investors and encouraging long-term ownership.

Today, shares of Kanani Industries Ltd plunged 2.30 per cent to Rs 8.91 per share from its previous closing of Rs 9.12 per share with an intraday high of Rs 9.26 and an intraday low of Rs 8.85. The stock’s 52-week high is Rs 10.98 and its 52-week low is Rs 5.43.

Kanani Industries Ltd, founded in 1983, is a manufacturer and exporter of diamond-studded jewellery. The company offers a wide range of diamond-studded jewellery, including rings, necklaces, earrings, bracelets, and pendants. The company has a market cap of Rs 88.15 crore with a 3-year stock price CAGR of 40 per cent. Furthermore, the company reported positive numbers in its Quarterly Results (Q2FY24) and annual results (FY23).

The stock is up by 70 per cent from its 52-week low of Rs 5.73 per share and gave multibagger returns of over 160 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.