Shares of this multibagger chemical stock under the ‘micro-cap’ category jumped around 9 percent on Wednesday after the company is going to turn ex-bonus. In the last five trading sessions, the company’s stock has gained more than 20 percent.
With a market capitalization of Rs 67.24 crores, the stocks of Yug Decor Limited, a chemical sector company, started their trading session on Wednesday at Rs 106.50 and currently trades at Rs 107.50, gaining almost 9 percent as compared to the previous close of Rs 98.56 apiece.
In August 2023, the company published a filing with the Bombay Stock Exchange intimating about a Bonus Issue in the ratio of 15:100, i.e., issue of 15 Bonus fully-paid shares for every 100 fully-paid equity shares held. Recently, the company has fixed the Record Date for the same as October 5th, 2023.
Keeping a purview of one year, the company’s stock has proven to deliver multibagger returns of 110 percent, i.e., if someone had invested Rs 1 lakh into the company’s stock a year back, it would have converted to Rs 2.10 lakhs.
During the recent financial years, the company has been successful in increasing its operating revenues as well as net profits. The operating revenues rose from Rs 24.49 crores during FY21-22 to Rs 31.19 crores during FY22-23, and, the net profits increased from Rs 10 lakhs to Rs 1.14 crores during the same time horizon.
Moreover, the profitability metrics of the company rose sharply with the return on equity (RoE) taking a shift from 1.52 percent during FY21-22 to 16.62 percent during FY22-23, and, the return on capital employed (RoCE) improving from 4.92 percent to 20.15 percent.
According to the latest shareholding data available, the company’s Promoters hold a 70.44 percent stake followed by the Retail Investors holding a 29.56 percent stake in the company.
Yug Decor Limited, with domestic as well as international operations, is engaged in the business of manufacturing various adhesives and sealants. Some of the products under the company’s portfolio include synthetic binders, footwear adhesives, natural rubber adhesives, and many more.
Written by Amit Madnani
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