Double Dhamaka! 10:1 Stock Split & Rs 5/Share Dividend Announced: Multibagger Textile Stock Hit 52-Week High on July 24; PAT Jumps Over 75 Per Cent
The stock is up by 71 per cent from its 52-week low of Rs 705 per share and gave multibagger returns of over 1,700 per cent in 5 years.
On Wednesday, shares of Sportking India Limited gained 12.60 per cent and made a fresh new 52-week high of Rs 1,316 per share from its previous closing of Rs 1,168.85 per share. At the closing bell, shares of the company were trading at Rs 1,203.50 per share, up 3 per cent with a spurt in volume by more than 1.30 times on BSE.
Sportking India Ltd, a textile company within the Sportking Group, manufactures a wide range of yarns (cotton, synthetic, and blended), fabrics, and garments. Their yarn offerings include 100 per cent cotton, polyester/cotton blends, fancy yarns, dyed yarns, and even acrylic and acrylic/polyester blends. The company has a market cap of over Rs 1,500 crore.
According to Quarterly Results, the net sales increased by 17.7 per cent to Rs 634.05 crore and net profit increased by 75.1 per cent to Rs 31.83 crore in Q1FY25 compared to Q1FY24. In its annual results, the net sales increased by 7.8 per cent to Rs 2,377.14 crore and net profit decreased by 46.7 per cent to Rs 70.35 crore in FY24 compared to FY23.
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The Board announced a stock split of equity shares in the ratio 10:1 i.e., sub-division/ stock split of 1 equity share having a face value of Rs 10 each into 10 equity shares having a face value of Re 1 each. Additionally, had recommended a final dividend of Rs 5 per equity share of Rs 10 each of the Company for approval by the shareholders at the Annual General Meeting (AGM). The Record Date for the stock split and dividend is yet to be announced.
The shares of the company have a PE of 18x and have a good return on equity (ROE) track record: 3 Years ROE 29.5 per cent. The stock is up by 71 per cent from its 52-week low of Rs 705 per share and gave multibagger returns of over 1,700 per cent in 5 years. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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