Synopsis:
Karnika Industries Limited to issue 4:1 bonus shares from reserves, pending shareholder approval at EGM on August 18, 2025.
This micro-cap textiles stock, engaged in manufacturing and exporting kids’ ready-made garments with a focus on style, comfort, and affordability, jumped 3 percent after the company’s board considered a 4:1 bonus issue, pending shareholder approval at EGM on August 18, 2025.
With a market capitalization of Rs. 819.73 crores, the share of Karnika Industries Limited has reached an intraday high of Rs. 663.90 per equity share, rising nearly 2.51 percent from its previous day’s close price of Rs. 647.65. Since then, the stock has retreated and is currently trading at Rs. 661.10 per equity share.
On July 15, 2025, the Board of Directors of Karnika Industries Limited approved key resolutions, including an increase in authorised share capital from Rs. 25 crore to Rs. 70 crore.
Additionally, the company is also issuing a bonus issue of equity shares in the ratio of 4:1, subject to shareholder approval at the upcoming EGM on August 18, 2025. Bonus shares will be issued from free reserves and securities premium, with credit expected within two months of Board approval.
Karnika Industries Limited was established in 2008 and is a prominent Indian company specializing in the manufacture and export of kids’ ready-made garments. With a legacy spanning over two decades, the company is recognized for delivering stylish, comfortable, and affordable children’s clothing
The company focuses on kids’ clothing, offering a wide variety like frocks, tees, shorts, pyjamas, and suits. Known as “India’s Most Loved Kidswear Brand,” it is trusted by families across the country for style and comfort.
The company operates from a facility exceeding 200,000 square feet and can produce over 850,000 units per month to meet large-scale orders. Karnika offers an extensive selection, with more than 500 types of products in its catalog.
Coming into financial highlights, Karnika Industries Limited’s revenue has increased from Rs. 63 crore in H2 FY24 to Rs. 75 crore in H2 FY25, which has grown by 19.05 percent. The net profit has also grown by 33.33 percent from Rs. 6 crore in H2 FY24 to Rs. 8 crore in H2 FY25. Karnika Industries Limited’s revenue and net profit have grown at a CAGR of 38.51 percent and 105.98 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE stand at 24.2 percent and 29 percent, respectively. Karnika Industries Limited has an earnings per share (EPS) of Rs. 14.5, and its debt-to-equity ratio is 0.85x.
Written By – Nikhil Naik
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