A multibagger railway company with a penny stock status is going to split for the first time ever. The ratio of stock split is 1:10. The stock will become cheaper to both existing and new customers, upon completion of the stock split. This is not IRFC, nor IRCTC, and neither RVNL who are the railway PSU giants, but instead it is K&R Rail Engineering, a civil construction company.
Before splitting K&R Rail has witnessed impressive buying on exchanges. It has a healthy return on equity of 10.78%. And, in three years, the stock has given a whopping 1,732% returns. The stock price which was once Rs 25.45 apiece on August 3, 2021, is now trading near Rs 470 levels.
K&R Rail share price as of August 3, 2024, is at Rs 466.30 apiece with market cap of Rs 987.20 crore.
As per Trendlyne data, here are the fundamentals for the stock:
- Annual Revenue rose 70.65%, in the last year to ₹665.91 CrHyderabad Investment. Its sector's average revenue growth for the last fiscal year was 11.49%.
- Annual Net Profit rose 23.93% in the last year to ₹7.78 Cr. Its sector's average net profit growth for the last fiscal year was 142.17%.
- Stock Price fell 18.74% and underperformed its sector by 94.17% in the past year.
- Debt to Equity Ratio is zero as the company is debt-free.
- Quarterly Revenue fell 25.82% YoY to ₹152.75 Cr. Its sector's average revenue growth YoY for the quarter was 8.84%.
- Quarterly Net profit fell 341.15% YoY to ₹7.78 Cr. Its sector's average net profit growth YoY for the quarter was 2.95%.
- Price to Earning Ratio is 128.54, higher than its sector PE ratio of 43.31.Kanpur Wealth Management
- Return on Equity(ROE) for the last financial year was 12.95%, in the normal range of 10% to 20%.
- Mutual Fund Holding remained the same in the last quarter at 0%.
- Promoter Share Holding stayed the same in the most recent quarter at 55.82%.
- Interest Coverage Ratio is 9.51, higher than 1.5. This means that it is able to meet its interest payments comfortably with its earnings (EBIT).
- Promoter Pledges are zero.
K&R Rail has announced its first-ever stock split in the ratio of 1:10. This means that the company will sub-divide its 1 existing equity share having a face value of Rs 10 each into ten smaller shares having a face value of Re 1 each fully paid-up.
Further, K&R Rail said the Record Date for subdivision of equity shares will be intimated to the Exchanges subsequently, after the approval of the resolution for sub-division by the shareholders at EGM.
The reason behind the stock split is to enhance the company's liquidity and encourage the participation of small investors by making it more affordable. The company is expecting to complete its stock split action in approximately 3 months from the date of receipt of approval from the shareholders of the company.
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