1:1 bonus share & business expansion into agriculture industry after 10:1 stock split: Multibagger penny stock under Rs 5 keep under the radar!

The stock gave multibagger returns of 420 per cent in just 1 year whereas BSE Sensex is up by 21 per cent.

Franklin Industries Ltd informed that the Board Meeting of the company was held on July 17, 2024. The Following Business were transacted during the Meeting:

bonus Update: Bonus issue of equity shares in the ratio of 1:1 i.e., 1 equity share of Rs 1 each for every 1 equity share of Rs 1 each held by the shareholders of the company as on the record date (to be determined by the board and will be intimated to the exchange).

Business Expansion: In a move to expand the business, the Board has authorized investment in the agriculture industry. We'll target high-growth, profitable opportunities that align with our commitment to value creation and shareholder returns. This strategic expansion strengthens our market position and generates sustainable long-term value, reflecting its commitment to sound financial management and maximizing the company’s value through agriculture.

Results: According to Quarterly Results, the net sales increased by 263 per cent to Rs 26.63 crore and net profit increased by 840 per cent to Rs 5.65 crore in Q1FY25 compared to Q1FY24.

Today, shares of Franklin Industries Ltd jumped 5 per cent upper circuit to Rs 3.91 per share from its previous closing of Rs 3.73. The 52-week high of the stock is Rs 8.26 and the 52-week low of Rs 0.71. The company's shares saw a spurt in volume by more than 5.15 times on BSE.

stock split Update: The shares of the company ex-traded stock split/sub-division of 1 equity share of the face value of Rs 10 each fully paid up into 1 equity share of Rs 1 each fully paid up, resulting in the issuance of 10 equity shares of Rs 1 each fully paid up, thereby keeping the paid-up capital intact. The stock split is to improve the liquidity of the company's equity shares in the stock market and to make the shares more affordable to small investors. The ex-date for the stock split was Thursday, January 11, 2023.

Franklin Industries Limited provides financial services. The company offers real estate services, as well as trading of various commodities, equities, gems, jewellery and textiles. Franklin Industries serves customers in India. The stock gave multibagger returns of 420 per cent in just 1 year whereas BSE Sensex is up by 21 per cent.

The company has a market cap of Rs 56.4 crore. The shares of the company have a PE of 5x whereas the industry PE is 36x with an ROE of 112 per cent and an ROCE of 120 per cent. As of March 2024, the promoters in the company own a 0.02 per cent stake while the rest 99.98 per cent stake is owned by the public.

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

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