Could this paint manufacturing company be the next Asian Paints? Board announces stock split from Rs 5 to Rs 1 after bonus share in the ratio 1:1

FIIs have increased their stake to 16.83 per cent in December 2023 compared to 15.19 per cent in September 2023.

Today, the stock market made an all-time high with the BSE Sensex Index crossing a level of 75,000 and the NSE Nifty-50 Index crossing a level of 22,700. It is often said that Small-Cap stocks hold the potential to become the next generation of market giants. These smaller companies offer the allure of high growth, as they have room to expand and innovate in their industries. While they carry more risk than established Large-Cap companies.

There is one stock from the paints manufacturing industry and a part BSE Small-Cap Index, which is making the round on D-Street as this could be the next Asian Paints. The name of the stock is Kamdhenu Ventures Ltd.  

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 shall be decided after obtaining the requisite approval of the shareholders of the company and will be intimated in due course. 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.

Also Read: Understanding Cash Flow: Essential Types You Need to Know

Here is a comparison of the stocks between Kamdhenu Ventures Ltd and Asian Paints Ltd:

Do you think in the coming years, old will be gold? Like staying invested in Asian Paints would be a perfect strategy or switching to Kamdhenu Ventures would be a better option? Share in the comments section.

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