Synopsis:
Chandrima Mercantiles Limited is engaged in trading agricultural products. The company recently secured shareholder approval for a 1:2 bonus share issue, enhancing shareholder value without additional investment.
Engaged in trading and investment activities, the company is known for its role in facilitating diverse financial operations. In this update, investors can look forward to details on the shareholder approval for a 1:2 bonus share issue, which has driven strong market enthusiasm around the low-priced stock.
Chandrima Mercantiles Limited‘s stock, with a market capitalisation of Rs. 172.14 crores, rose to Rs. 7.75, hitting the intraday upper circuit, up 5 percent from its previous closing price of Rs. 7.39. Furthermore, the stock over the past year has given a return of 101 percent.
Bonus Issue
The Board of Directors of the company held a meeting on Friday, 29th August 2025, at their registered office in Ahmedabad. During the meeting, which lasted from 3:00 PM to 4:00 PM, the board discussed and approved the proposal to issue bonus equity shares to the shareholders, subject to shareholder approval.
On 30th September 2025, at the company’s shareholders meeting, the shareholders voted in favor of approving the bonus issue. This means the company will issue 1 new equity share for every 2 existing fully paid shares held by shareholders, as previously proposed by the board.
For example, if a shareholder owns 100 shares and the company announces a 1:2 bonus issue, this shareholder will receive 50 additional shares for free, making their total shares 150. The share price will adjust accordingly, but the total value of the investment remains the same. This move increases the number of shares and rewards shareholders without any extra cost to them.
Q1 Financial Highlight
The company reported revenue of Rs. 4.41 crore in Q1FY26, a decline of 29% YoY from Rs. 6.25 crore in Q1FY25 and down 50% QoQ from Rs. 8.76 crore in Q4FY25. Over the last three years, revenue has grown at a 14% CAGR despite recent volatility.
Net profit stood at Rs. 0.42 crore in Q1FY26, lower than Rs. 0.64 crore in Q1FY25 (down 34% YoY), but a sharp recovery compared to a loss of Rs. 0.99 crore in Q4FY25. Profit has expanded strongly over the medium term with a 3-year CAGR of 232%.
Written By Fazal Ul vahab C H
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