2:1 Stock Split & 1:2 Bonus Issue Announced by This Small-Cap Engineering Company; Stock Gains Over 1,100 per cent in Just 2 Years!

The company's shares have delivered an impressive return of over 195 per cent to their shareholders in just 1 year.

Incorporated in 1982, Aartech Solonics Ltd manufactures Electrical Machinery and Apparatus N.E.C. At its meeting held today, Thursday, June 20, 2024, the company considered and approved the following:

• The stock split of existing equity shares of Rs 10 each fully paid-up into 2 equity shares of Rs 5 each fully paid-up, subject to approval of members. The Record Date for the split will be notified later.
• Increase in authorized share capital from Rs. 15,00,00,000 divided into 1,50,00,000 Equity Shares of Rs. 10/- each to Rs. 25,00,00,000 divided into 5,00,00,000 Equity Shares of Rs. 5/- each, and corresponding amendment to the Memorandum of Association.
• Issuance of bonus shares in the ratio of 1:2 (1 fully paid-up equity share for every 2 equity shares held), subject to approval of members.

As per Quarterly Results in Q4 FY24, Aartech Solonics reported a quarterly revenue from operation of Rs 9.98 crore compared to a revenue of Rs 2.83 crore, representing a growth on a YoY basis. The net loss of the company stood at Rs 0.38 crore in Q4 FY24 compared to a net loss of Rs 0.31 crore. Turning attention to the annual performance of the company, it reported a revenue of Rs 32.74 crore, compared to Rs 21.69 crore in FY23 representing a gain of 51 per cent YoY. Moreover, the company’s net profit stood at Rs 1.32 crore in FY24 compared to a profit of Rs 1.86 crore.

On Wednesday shares of Aartech Solonics closed the day at Rs 230.65 per share on the BSE. Additionally, the stock has delivered a multibagger return of over 1170 per cent in just 2 years. According to the shareholding pattern, the company's promoters hold 52.68 per share while the public or retail investors hold 45.92 per share. FIIs and DIIs hold around 0.01 per cent and 1.39 per cent stake in the company.

Investors must keep this Small-Cap stock on their radar.

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