Stock below Rs 300: This multibagger announces stock split in 1:10; do you own it?

In the last one year, its returns have shot through the roof as it gained 283.56 per cent and turned into a multi-bagger.

Arfin India, engaged in manufacturing and trading of non-ferrous metals, is seen buzzing on the bourses on Monday as it zoomed over 2 per cent and is trading above Rs 252. The stock has jumped 72 per cent in the last three months while in the last one year, its returns have shot through the roof as it gained 283.56 per cent and turned into a multibagger-pick 

So, what’s the buzz in the stock? The board of directors of the company approved the subdivision of each existing equity share of the company, having a face value of Rs 10 each fully paid up into 10 equity shares of the face value of Rs 1 each, subject to regulatory/statutory approvals as may be required along with the approval of the shareholders of the company. In short, the board of directors approved the stock split in 1:10.   

Another tailwind, working in the favour of the stocks, is as follows: The company entered into a service agreement with Tata International Limited (TIL) & Tata International Singapore Pte Ltd (TISPL) for the supply of aluminium scraps and other materials in the Indian market, whereby Arfin India Limited will provide business development services for the procurement and sales to TIL as well as TISPL. This service agreement will be effective from September 2022.  

The agreement, which is estimated to cover a volume of around 10,000 MT to 15,000 MT, will facilitate the easy availability of inventories for the company. Also, Arfin India Limited has initiated the installation of a 1.2 MW Solar Power Plant for captive use at Terwada village (Gujarat). After the successful implementation of the solar power plant, the company will save Rs 125 lakh per annum on electricity/power costs. A transition to renewable energy is good for the people as well as the planet.  

In Q1FY23, the company, which deals in aluminium wire road, aluminium deox, cored wire, alloy products, automobile parts, and cable & conductors, reported total revenue of Rs 146.3 crore as against Rs 99.3 crore in Q1FY22, a growth of 47 per cent on a YoY basis. The net profit for the quarter jumped more than two-fold to Rs 2.7 crore against Rs 1.1 crore.  

Keep this stock on your watchlist!