Multibagger stock locked in upper circuit; Board likely to announce bonus shares and stock split!

From Rs 30 per share to Rs 107.85 per share, the stock gave multibagger returns of 259.5 per cent in just 2 years.

The trading session on Monday ended with positive gains for the benchmark indices. The BSE Sensex Index recorded an increase of 0.17 per cent, reaching a level of 64,996.60 with a market capitalization of BSE-listed companies worth Rs 3,07,92,842.06 crore.

Along with the market in green, one of the Top Gainers on BSE, shares of this iron & steel company were locked in a 5 per cent upper circuit to Rs 107.85 per share from its previous closing of Rs 102.75. The shares of the company saw a spurt in volume by more than 1.01 times on BSE.

The sudden rise in the stock price was due to the following announcement made by the company:

A meeting of The Board of Directors of the company is scheduled to be held on September 05, 2023, at 04:00 PM to inter alia, consider and approve the following businesses;

a.) To consider stock split /sub-division of equity shares of the company.

b.) To increase the authorized share capital of the company and subsequent alteration to the memorandum of association of the company.

c.) To recommend and approve the issue of bonus shares to the equity shareholders of the company.

d.) To discuss any other business with the permission of the chair.

The multibagger iron & steel stock is RUDRA GLOBAL INFRA PRODUCTS LTD.

Rudra Global Infra Products Ltd was started in 1991 with a steel re-rolling mill in Gujarat having a capacity of 1000 MT per month. Today, it is engaged in various businesses like ship recycling, oxygen plants, induction furnaces and re-rolling mills producing more than 3 lakh MT per annum of steel.

Talking about the financials, Rudhra Global has a market cap of Rs 270.55 crore. According to the Quarterly Results, the net sales increased by 43.14 per cent to Rs 138.16 crore, operating profit increased by 10.24 per cent to Rs 9.8 crore and net profit increased by 14.58 per cent to Rs 4.4 crore in Q1FY24 compared to Q1FY23. In FY23, the net sales increased by 28.77 per cent to Rs 452 crore and net profit increased by 75 per cent to Rs 14 crore compared to FY22.

From Rs 30 per share to Rs 107.85 per share, the stock gave multibagger returns of 259.5 per cent in just 2 years. Investors should keep an eye on this micro-cap stock.

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