7:1 bonus share & 10:1 stock split: Debt-free multibagger penny stock under Rs 5 in green as the company reports turnaround net profit; Details inside!

The stock gave multibagger returns of 210 per cent in just 1 year and a whopping 3,330 per cent in 5 years.

On Thursday, the shares of Sunshine Capital Ltd gained 6.2 per cent to Rs 2.40 per share from its previous closing of Rs 2.26. The stock’s 52-week high is Rs 4.13 while its 52-week low is Rs 0.46. The company has a market cap of over Rs 250 crore. 

Sunshine Capital Ltd, established in 1989, navigates the financial realm through share trading, investing, and financing activities. Recognized as a non-deposit non-systematically important non-banking financial company, it holds its ground in India's credit reporting sphere with registrations across all four RBI Authorized CICs. According to Quarterly Results, the company reported net sales of Rs 2.88 crore in Q1FY25 compared to net sales of Rs 1.97 crore in Q4FY24. The company reported s turnaround net profit of Rs 2 crore in Q1FY25 compared to a net loss of Rs 48.12 crore in Q4FY24, an increase of over 100 per cent.

Sunshine Capital Ltd has achieved a debt-free status by successfully raising funds through a preferential issue of equity shares, solidifying its financial position for future growth. The company is strategically expanding into the retail loan segment, offering home loans and education loans, particularly targeting students pursuing studies abroad, and seeking partnerships with international universities. Recognizing India's potential in AI, Sunshine Capital Ltd is investing in early-stage tech and AI start-ups to capitalize on the growing technological advancements and position itself as a leader in the AI revolution.

Sunshine Capital Ltd. is offering shareholders a double treat with a stock split and bonus shares. The company's board of directors approved a 10:1 stock split, reducing the face value of each share from Rs 10 to Rs 1. This effectively increases the number of shares outstanding by 10 times. Additionally, shareholders will receive a 7:1 bonus issue, meaning they'll get 7 additional shares for every 1 share they currently hold.

This translates to a significant boost in the total number of shares owned by each investor, potentially increasing their overall holding value. This move could make the stock more affordable for individual investors and enhance liquidity, leading to increased trading activity. The company fixed the record date for bonus shares & stock split as Monday, March 11, 2024.

The promoters of the company own 19.03 per cent and the public holds 80.98 per cent stake. The stock gave multibagger returns of 210 per cent in just 1 year and a whopping 3,330 per cent in 5 years. Investors should keep an eye on this micro-cap stock.

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

Also Read: Penny Stocks from the 2007-2008 Stock Market Crisis; Set to Announce Bonus Shares: Would you benefit?