Shares of a company in ace investor Dolly Khanna’s portfolio gained nearly 5 percent to reach an intraday high of ₹ 834.80 apiece on the National Stock Exchange (NSE) after it announced a bonus issue in the ratio of 1:1. At 12:15 PM, its shares were trading at ₹ 827.90 apiece.
Tinna Rubber & Infrastructure is primarily engaged in the conversion of end-of-life tyres (ELT) into crumb rubber and steel wires obtained in the process.
Ace investor Dolly Khanna holds 1,12,848 shares or a 1.32 percent stake in the company, as per its latest shareholding pattern. Her holdings are worth ₹ 9.34 crores as per the company’s current share price.
Tinna Rubber & Infrastructure informed the bourses that its board of directors have fixed Saturday, September 16, 2023, as the record date in order to determine the number of shareholders entitled to bonus equity shares in the ratio of 1:1. Therefore eligible shareholders will receive one bonus equity share of ₹ 10.00 each fully paid up for every equity share of ₹ 10 each that they hold in the company.
In the past six months, the company’s share price rose from ₹ 370.75 to ₹ 834.80, by 125.17 percent to deliver multibagger returns. Therefore, if an investor had invested ₹ 1 lakh in its shares six months ago, the value of their holdings would have been ₹ 2.25 lakhs today!
With a market capitalization of ₹ 34,133 crores, Tinna Rubber & Infrastructure is a small-cap company. It has an ideal return on equity of 20.35 percent and an ideal debt-to-equity ratio of 0.13. Its shares were trading at a price-to-earnings ratio (P/E) of 79.11 which is higher than the industry P/E of 38.74, indicating that the stock might be overvalued as compared to its peers.
Foreign institutions hold a 31.68 percent stake in the company, followed by promoters with 29.76 percent, mutual funds with 24.08 percent, retail investors with 11.45 percent and other domestic institutions with 3.03 percent.
Written by Simran Bafna
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