During Wednesday’s trading session, the shares of a micro-cap company engaged in manufacturing cotton yarns hit a 5 percent lower circuit on BSE, after the company’s Board approved the stock split in a 1:10 ratio.
Price Movement
With a market cap of Rs. 94.04 crores, the shares of Padam Cotton Yarns Limited hit a 5 percent lower circuit at Rs. 72.84, as compared to its previous closing price of Rs. 76.67.
The stock has delivered multibagger returns of around 586 percent in just one year, but fell by 16 percent in the last one month.
What’s the News
As per the latest regulatory filings with the BSE, the Board of Padam Cotton Yarns Limited has approved the sub-division/split of equity shares of the company in a ratio of 1:10.
Under the proposed arrangement, one equity share of Rs. 10 each (fully paid-up) will be subdivided into 10 equity shares of Re. 1 each (fully paid-up), subject to the necessary approvals.
The Record Date for the sub-division/split will be determined after obtaining the requisite approval from the shareholders and will be announced in due course.
On 16th April, the company announced scheduling a meeting of the Board of Directors of the company to be held on Wednesday, 23rd April 2025, at the company’s registered office in Karnal.
Financial Performance
Padam Cotton reported a significant growth in revenue from operations, experiencing a quarter-on-quarter increase of nearly 1081 percent, rising from Rs. 1.11 crores in Q3 FY25 to Rs. 13.11 crores in Q4 FY25.
However, during the same period, its net profit decreased from Rs. 8.34 crores to Rs. 1.91 crores, representing a decrease of around 77 percent QoQ.
The company’s total expenses increased by about 734 percent QoQ from Rs. 1.3 crores in Q3 FY25 to Rs. 10.84 crores in Q4 FY25.
About the company
Padam Cotton Yarns Limited is engaged in the business of manufacturing all kinds of yarns, trading/marketing of agricultural implements, pumps and motors, and also providing consultancy in textile-related business.
The company has a focus on enhancing offerings in lifestyle and exploring various new trends in readymade garments and adding new products in lifestyle, textile products and the fashion industry.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
