Double Dhamaka! 10:1 Stock Split & 10 Per Cent Dividend Announced: Multibagger Stock With High ROE & High ROCE To Keep Under Radar
The stock gave multibagger returns of 125 per cent in just 6 months, 385 per cent in 1 year and a whopping 3,200 per cent in 5 years.
Systematix Corporate Services Limited announced that at its Annual General Meeting (AGM) held on September 26, 2024, the shareholders approved a significant corporate action. The members voted in favour of subdividing or splitting each existing equity share, currently valued at Rs 10, into 10 new equity shares, each with a face value of Rs 1. This subdivision is expected to be completed within two months of the shareholder approval, subject to any necessary regulatory clearances.
In addition to the equity share split, the AGM also approved a final dividend of Re 1 per equity share for the financial year ending March 31, 2024. This dividend represents a 10 per cent payout based on the face value of the existing Rs 10 shares. The dividend declaration is a testament to the company's strong financial performance and its commitment to rewarding its shareholders.
About the Company
Systematix Corporate Services Limited, founded in 1985, is a leading financial services firm offering a comprehensive range of investment management and advisory services. The company caters to a diverse clientele, including foreign institutional investors (FIIs), domestic institutional investors (DIIs), insurance companies, and other financial institutions.
Systematix's core business segments are broking, merchant banking and investment banking, and financing and other activities. The broking segment offers a wide range of services, including cash and derivatives trading, research, and advisory. The company has a strong institutional client base and has been consistently gaining market share in the broking space. As of Q1FY25, Systematix's institutional broking business accounted for 63 per cent of its total revenue, with an active clientele of over 240 institutional clients.
DSIJ’s 'Tiny Treasure' service recommends researched Small-Cap stocks with Inherent Growth Potential. If this interests you, do download the service details here.
The merchant banking and investment banking division provides a comprehensive range of services, such as mergers and acquisitions (M&As), capital raising, deal structuring, and IPOs. The company has a proven track record in successfully executing complex transactions and has been instrumental in helping numerous companies achieve their growth objectives. In FY24 and Q1 FY25, Systematix successfully closed 4 M&As, 8 block deals, 4 preferential issues, 4 QIPs, 1 IPO, 1 open offer, and 1 delisting.
The financing and other activities segment includes wealth management, portfolio management services, and financing. The company offers a variety of investment products and services to its clients, catering to their diverse financial needs. Systematix's wealth management division has a significant AUM of over Rs 750 crore and has been delivering consistent returns to its clients. The company's portfolio management services (PMS) have also been performing well, with returns of approximately 19 per cent in Q1 FY25.
The company has a market cap of Rs 2,321 crore with an ROE of 43 per cent and an ROCE of 48 per cent. The stock gave multibagger returns of 125 per cent in just 6 months, 385 per cent in 1 year and a whopping 3,200 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.