Bonus Alert: 2 Free Shares For 3 Held; 558% Stock Growth in 12 Months
Despite a 13% correction in 2025’s bearish market, the stock soared 296% in 6 months and 558% over the past year. The company now announces a lucrative bonus share issue
Company Announces 2:3 bonus Share Issue Padam Cotton Yarns Limited has secured in-principle approval for issuing up to 5,164,000 bonus equity shares in a 2:3 ratio. This means shareholders will receive two additional shares for every three held. The face value of each share remains Rs 10.
Bonus shares are additional free shares granted to existing shareholders, reflecting the company’s confidence in its financial stability. While they do not provide immediate monetary gains, they offer advantages such as increased liquidity, enhanced shareholding, and a positive perception of company growth.
Bonus Shares Record Date Announced In compliance with SEBI (Listing Obligation and Disclosure Requirements) Regulations 2015, Padam Cotton Yarns Limited has set March 18, 2025, as the record date. This determines shareholder eligibility for receiving the bonus shares.
Stock Performance & Market Sentiment Padam Cotton Yarns has demonstrated extraordinary resilience in the stock market. In the last 12 months, it delivered an astonishing 558% return, with a 296% rally in just six months. Even amid the broader bearish market conditions of 2025, the stock witnessed only a 13% correction, indicating strong relative strength.
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Financial Performance & Business Overview Despite its stellar stock performance, the company’s December 2024 quarterly earnings highlight operational challenges:
- Revenue: Rs 1.11 crore
- Operating Loss: Rs 4 lakh
- Net Profit: Rs 5.10 crore (mainly from other income of Rs 5.95 crore)
Established in 1994, Padam Cotton Yarns Limited primarily manufactures cotton yarn and offers consulting services. The company also engages in the wholesale trading of agricultural pumping sets and implements. It produces Tow Dyed, Bulked Acrylic Yarn, leveraging Japan’s Exlan technology.
Current Valuation & Market Capitalisation The stock is currently trading at Rs 157, with a market capitalisation exceeding Rs 122 crore.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.