Stock split from Rs 5 to Rs 1 after bonus share in the ratio 1:1: Turnaround story in this low PE paint manufacturing stock; PAT zooms over 250 per cent!

The stock is up over 50 per cent from its 52-week low is Rs 105.13 per share.

Kamdhenu Ventures Ltd, incorporated in 1995, is a manufacturer and seller of a wide variety of paints including dual paints series, designer finishes, exterior emulsions, interior emulsions, acrylic washable distempers, premium enamel paints, wood coating products, and waterproofing solutions. In addition to these, they also offer economical emulsions, undercoats, putty, specialized coatings, and construction chemicals. Their manufacturing unit located in Alwar has a capacity of 36,000 KL p.a. and they also outsource an additional 50,000 KL p.a. They have a network of 33 sales depots across India assisted by over 4,000 dealers for their 40+ SKUs across 10+ product categories. The company was listed on the BSE and NSE on January 24, 2023.

The Board of Directors of Kamdhenu Ventures announced a stock split of equity shares such that 1 equity share having a face value of Rs 5 each fully paid up, be sub-divided/split into 5 equity shares having a face value of Rs 1 each fully paid up. The record date for the sub-division/split of existing equity shares is Friday, June 14, 2024. Earlier, on August 01, 2023, the shares of the company ex-traded bonus shares in the ratio 1:1. Additionally, FIIs have increased their stake to 16.83 per cent in December 2023 compared to 15.19 per cent in September 2023.

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According to Quarterly Results, the net sales increased by 20.3 per cent to Rs 85.15 crore in Q4FY24 compared to net sales of Rs 70.80 crore in Q4FY23. The company reported a net profit of Rs 4.19 crore in Q4FY24 compared to a net loss of Rs 2.49 crore in Q4FY23, an increase of 268.3 per cent. In its annual results, the net sales increased by 12.4 per cent to Rs 291.71 crore in FY24 compared to net sales of Rs 259.50 crore in FY23. The company reported a net profit of Rs 13.85 crore in FY24 compared to a net loss of Rs 11.27 crore in FY23, an increase of 223 per cent.

The company has a market cap of over Rs 1,000 crore. The shares of the company have a PE of 12x whereas the industry PE is 34x. The stock is up over 50 per cent from its 52-week low is Rs 105.13 per share.

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