Stock Under Rs 10: 1:1 Bonus Share Announced by This Microcap Company, Stock Rallied Over 9 Per cent Today!
The Board of Directors approved to issue Bonus Shares from free reserves and Securities Premium Account.
Garment Mantra Ltd in their meeting held today on July 8, 2024, the Board of Directors approved several key decisions, including approval to issue bonus Shares from free reserves and Securities Premium accounts. The Board has sanctioned the issuance of Bonus shares to existing equity shareholders in a 1:1 ratio (one bonus share for every one equity share of nominal value Rs. 1/- each), pending shareholder and regulatory approval.
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Furthermore, approved the consideration of increasing the Authorized Share Capital and amending the capital clause in the Memorandum of Association. The Board has proposed an increase in the Authorized Capital from the current Rs. 37,00,00,000/- (Rupees Thirty-Seven Crores Only), divided into 37,00,00,000 (Thirty-Seven Crores) equity shares of Rs. 1/- each, to Rs. 52,00,00,000/- (Rupees Fifty-Two Crores Only), divided into 52,00,00,000 (Fifty-Two Crores) equity shares of Rs. 1/- each, subject to shareholder approval.
Today Garment Mantra Ltd shares closed at around Rs 6.65 per share. The company’s current market capitalization stands at Rs 66.76 crore. The stock has delivered a return of around 32 per cent in just 1 year.
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As per the Quarterly Results, in the fourth quarter of FY24, Garment Mantra Ltd recorded a revenue of Rs 70.33 crore. The operating profit for Q4 FY24 stood at Rs 2.27 crore. The net profit for Q4 FY24 was Rs 0.37 crore. Looking at the annual performance, the company generated a revenue of Rs 164 crore in FY24, compared to Rs 172 crore in FY23. The operating profit for FY24 was Rs 8 crore, with a net profit of Rs 2 crore.
Company is focusing on Domestic as well as Overseas Market. Management of the Company is also very aggressively looking for opportunities in the markets where they can utilize their strengths and achieve the new heights in this 3-decade old business.
Earlier in the year Garment Mantra Group has strategically joined the hands with reputed business houses of the Surat to efficiently cover big customers and the commission agents from the western, northern and central region of the Country. Business houses with whom, we as a group accompanying are into the textile business since decades and carries a good set of wholesale customers in their bouquet. This strategic tie-up will be beneficial for both sides as we will bet on our core strength i.e. production and supply chain and the other parties will take care of Sales and Marketing.
Investors must keep this micro-cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.