290 Per Cent Returns: Multibagger Garment Manufacturer Issues Bonus in the Ratio of 1:2

The Board of Directors of the company approved a bonus issue of equity shares in the ratio of 1:2.

On Friday, January 24, 2025, the Board of Directors of SBC Exports Ltd. approved a bonus issue of equity shares in the ratio of 1:2. This means shareholders will receive one additional equity share for every two shares held. The bonus issue is subject to shareholder approval via postal ballot and necessary regulatory clearances.

The bonus shares will carry the same rights as existing equity shares, including eligibility for dividends and other corporate benefits post-allotment. Before the issue, the company's equity share capital stood at Rs 31.74 crore (31.74 crore shares of Re. 1 each). Post-allotment, it will rise to Rs 47.61 crore (47.61 crore shares of Rs 1 each). The bonus issue will be funded from free reserves of Rs 15.87 crore, and shares are expected to be credited within two months from board approval.

Q3 FY25 Performance

SBC Exports Ltd. has delivered strong YoY growth in net sales and profit, despite a decline in EBITDA:

• Net Sales: ₹50 crore, up 5 per cent YoY from ₹47.8 crore in Q3 FY24.
• EBITDA: ₹1.54 crore, down 60 per cent YoY from ₹3.81 crore in Q3 FY24.
• Net Profit: ₹3.27 crore, up 15 per cent YoY from ₹2.84 crore in Q3 FY24.
• Earnings Per Share (EPS): ₹0.10, up 11 per cent YoY from ₹0.09 in Q3 FY24.

About the Company

Founded in 2011, SBC Exports Ltd. operates in garments manufacturing, manpower supply, and travel services. The company has an integrated setup with dyeing, printing, stitching, and packaging facilities. It has also diversified into travel services through its wholly-owned subsidiary Mauji Trip Limited. SBC Exports Ltd. has delivered multibagger returns of 290 per cent, making it a stock to watch in the garment manufacturing sector.

Disclaimer: This article is for informational purposes only and should not be considered investment advice.