Multibagger Telecom Infrastructure Stock Hit Back-To-Back Lower Circuits; Board Announces 2:1 Bonus Shares
The stock gave multibagger returns of 356 per cent from its 52-week low of Rs 364 per share.
Kore Digital Limited has announced a bonus issue of equity shares in a 2:1 ratio, meaning shareholders will receive two bonus shares for every one share held. The record date for determining eligibility is yet to be announced, but the bonus shares are expected to be credited or dispatched by February 1, 2025. To accommodate the additional shares, the company has increased its authorized share capital from Rs. 4.5 crore to Rs. 12.5 crore.
Earlier, the company secured a significant win by successfully bidding against RailTel's EOI for a major project. The company will be laying 35 kilometres of underground optical fiber cable (OFC) for a contract valued at Rs 25 crore. This achievement is particularly noteworthy as RailTel is a leading neutral telecom infrastructure provider in India with an extensive optic fiber network. The project, scheduled for completion by December 2024, reinforces Kore Digital's position in the rapidly growing Indian telecom infrastructure sector. Furthermore, the company has received a new work order worth Rs 20 crore from Navayuga Engineering Company Limited (NECL), a prominent engineering and core infrastructure company. This project is expected to be finalized before the first half of 2024.
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Kore Digital Limited operates as a telecommunication infrastructure provider and offers high-end communication solutions to corporate and telecom network operators. According to half-yearly results, the net sales increased by 511.4 per cent to Rs 91.82 crore, operating profit increased by 145.8 per cent to Rs 10.88 crore and net profit increased by 142.4 per cent to Rs 7.54 crore in H1FY25 compared to H1FY24.
On Wednesday, shares of Kore Digital Ltd hit a 2 per cent lower circuit to Rs 1,660 per share from its previous closing of Rs 1,693.85 per share. The stock’s 52-week high is Rs 2,856.15 per share and its 52-week low is Rs 364. In the recent trading sessions, the stock has been hitting back-to-back lower circuits.
The company has a market cap of over Rs 600 crore. The shares of the company have an ROE of 29 per cent and a ROCE of 40 per cent. The stock gave multibagger returns of 356 per cent from its 52-week low of Rs 364 per share. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.