Synopsis:
Sumeet Industries announced a 5:1 stock split, lowering share face value from Rs. 10 to Rs. 2. This move boosts share liquidity while holding value steady.
A leading manufacturer and exporter of polyester yarns and chips, this company is set for major developments, including a stock split and ambitious plans for a 30MW solar power plant alongside a capacity expansion. The news spotlights exciting growth and sustainability initiatives for investors and industry watchers
Sumeet Industries Limited‘s stock, with a market capitalisation of Rs. 1,349.81 crores, rose to Rs. 128.23, hitting the intraday upper circuit, up 2 percent from its previous closing price of Rs. 125.72. Furthermore, the stock over the past year has given a return of 2,557 percent.
Share Split
The company’s board has approved splitting each existing equity share with a face value of Rs. 10 into 5 equity shares, each with a face value of Rs. 2. This split is subject to approval from shareholders and regulatory authorities. The actual date when the split takes effect will be decided by the board after getting all necessary approvals.
Example: If you own 100 shares with a face value of Rs. 10 each (total face value = Rs. 1,000), after the split, you will have 500 shares with a face value of Rs. 2 each (still totaling Rs. 1,000). Your overall holding value remains unchanged, but you will have more shares at a lower face value.
Corporate Actions
Investment in Renewable Energy: The company is buying a 27% stake in Hi-Urja Techno LLP to secure solar power for its own use. It has also signed a deal to buy 14 MW of solar power from Hi-Urja.
Capacity Expansion & Equipment Replacement: To increase output, the company will add new production lines, raising capacity from 120 to 160 TPD, costing about Rs. 22.5 crore. It will also replace old air compressors with efficient ones for Rs. 10.4 crore, saving roughly Rs. 5 crore per year in power costs.
Solar Power Capacity Update: The solar project’s total capacity has increased to 34 MW—20 MW from a new plant (approved by GETO) and 14 MW from Hi-Urja, which is ready to start operating.
Q1 Financial Update
In Q1FY26, the company reported revenue of Rs. 248.47 crore, reflecting a 2.2% increase quarter-on-quarter (QoQ) from Rs. 243.02 crore in Q4FY25, but a 6.8% decline year-on-year (YoY) compared to Rs. 266.69 crore in Q1FY25. Over the last three years, sales have grown at a CAGR of 4%. The stock currently trades at a high P/E ratio of 125 and maintains a moderate debt-to-equity (D/E) ratio of 0.38.
On the profitability front, Q1FY26 profit stood at Rs. 7.98 crore, a steep 88.2% drop QoQ versus Rs. 67.68 crore in Q4FY25, but a notable turnaround from a loss of Rs. 8.47 crore in Q1FY25. This indicates that while revenue growth remains moderate and somewhat volatile, profitability has seen significant recovery on a YoY basis despite a sharp sequential decline last quarter.
Written By Fazal Ul Vahab C H
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