Kamdhenu Ltd., a leading steel products manufacturer in India, has announced its first stock split. The company’s board approved dividing each equity share with a face value of ₹10 into ten shares with a face value of ₹1. This decision aims to boost stock liquidity and make shares more affordable for small investors.
Key Stock Split Details
- Record Date: January 8, 2025
- Stock Split Ratio: 1:10 (One equity share of ₹10 converts into ten shares of ₹1 each)
- Reason: To increase liquidity, enhance retail participation, and make shares more accessible
The company also updated Clause V of its Memorandum of Association to reflect the higher number of shares after the split.
Financial Highlights
Kamdhenu has demonstrated consistent growth through impressive financial performance:
Q2FY25 Results:
- Net Sales: ₹190.2 crore (+3% YoY)
- Net Profit: ₹15.9 crore (+56% YoY)
H1FY25 Results:
- Net Sales: ₹374.7 crore (-5% YoY)
- Net Profit: ₹31.3 crore (+41% YoY)
FY24 Annual Figures:
- Net Sales: ₹721.7 crore
- Net Profit: ₹50.13 crore
The company’s return on equity (ROE) of 27% and return on capital employed (ROCE) of 35% highlight its strong operational efficiency. Kamdhenu’s market cap exceeds ₹1,400 crore, with notable improvements in working capital and debtor days.
Stock Fundamentals
Kamdhenu Ltd. continues to showcase strong financial fundamentals and operational efficiency:
- PE Ratio: 23.28 (lower than the sector average of 29.32, indicating value)
- ROE: 21.11% (reflecting effective use of shareholders’ capital)
- Debt-Free: A debt-to-equity ratio of 0 ensures financial stability.
- Interest Coverage Ratio: 122.51, showing robust earnings to meet obligations.
- Promoter Shareholding: 49.83%, following a recent reduction of 7.21%.
- Mutual Fund Holdings: Stable at 0.18%.
About Kamdhenu Ltd.
Founded in 1994, Kamdhenu Limited leads India’s steel and paint manufacturing industry. Its diverse product range includes TMT bars, structural steel, color-coated sheets, paints, plywood, and more. With over 11,500 dealers and distributors nationwide, the company operates through a robust franchisee model.
The stock split marks a strategic step to enhance liquidity and attract retail investors, aligning with Kamdhenu Ltd.’s vision for long-term growth.
Disclaimer: This article is for informational purposes only and should not be considered investment advice.
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