Shares of this penny stock engaged in the ‘edible oil’ business hit the 5 percent upper circuit in Tuesday’s trading session after the company fixed the Record Date for Bonus issue in the ratio of 2:1.
With a market capitalization of Rs 545.04 crores, the stocks of M K Proteins Limited opened their trading hour on Tuesday at Rs 42 and currently are locked in the 5 percent upper circuit registered at a price of Rs 43.56 apiece.
Such bullish movements in the company’s share price were observed after the company, via a recent regulatory filing, intimated that the Board of Directors of the company, in its meeting held on 3rd March 2024, has fixed ‘15th March 2024’ as the record date to ascertain the eligibility of shareholders entitled for ‘Bonus equity shares’ of the company.
The Bonus equity shares will be issued in the ratio of ‘2:1’, i.e., two bonus equity shares having a face value of Rs 1 each for every equity share held having a face value of Rs 1 each.
During the recent financial quarters, the company’s prime indicators of business, including the operating revenues as well as after-tax profits, showed a stellar performance.
The former increased from Rs 13.64 crores during Q2FY24 to Rs 68.86 crores during Q3FY24 and the latter, during the same time horizon, took a shift from Rs 41 lakhs to Rs 2.48 crores.
On a yearly basis, the company’s ratios showed a dip in numbers due to increased cost pressure with the return on equity (RoE) slipping from 25.71 percent during FY21-22 to 21.17 percent during FY22-23 and the return on capital employed (RoCE) shifting down from 35.13 percent to 30.87 percent.
According to the latest shareholding pattern data available for the December 2023 quarter, the company’s Promoters hold a 74.82 percent followed by the Public (retail) Investors holding the remaining 25.18 percent stake in the company.
Incorporated in 2012, M K Proteins Limited is engaged in the business of manufacturing as well as trading vegetable refined oil and by-products like wax, gums, and others. It also engages in trading various products including Rice Bran Oil and other items.
Written by Amit Madnani
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