Shares of this small company jumped around 5 percent after the company may announce a buyback, dividend, bonus shares and stock split. The shares have delivered a multibagger return of 126 percent to its shareholders in one year.
With a market capitalization of Rs. 4,822 crores, the shares of Balmer Lawrie & Company Ltd started Tuesday’s trading session on a higher note at Rs. 283 compared to its previous close of Rs. 270.80. During the trading session, the shares hit a high of Rs. 293.95, gaining around 5 percent and closed the day at Rs. 281.40 apiece.
According to a report published by CNBC, Balmer Lawrie & Company is expected to consider a share buyback and approve a bonus issue of shares as well as a split of its equity shares. If approved, this will mark the first instance of a stock split by the company. Earlier, the PSU company had approved a bonus issue in the ratio of 3:4 in 2013, 3:1 in 2016, and 1:2 in 2019
Furthermore, the company’s board is scheduled to meet on Friday, May 28, 2024, to consider the recommendation of a dividend on equity shares of the company for the financial year 2024, along with its March quarter results.
Coming onto the company’s financial statements, the revenue decreased marginally by 0.71 percent from Rs. 586 crores during the September quarter to Rs. 585 crores in the December quarter. On the other hand, the net profits increased by 5 percent from Rs. 63 crores to Rs. 66 crores during the same period.
Furthermore, the company aims to enhance its product portfolio by introducing new products to cater to evolving market demands and expand its offerings and plans to tap into new markets through exports, aiming to increase its global presence and reach a wider customer base.
Previously, the board of directors approved the establishment of a Free Trade Warehousing Zone (FTWZ) spanning 15 acres within the Jawaharlal Nehru Port Authority’s special economic zone, with an investment of Rs. 230 crores.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 5.67 percent during FY 21-22 to 6.54 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 8.51 percent to 9.95 percent during the same timeframe. In addition, the net profit margin increased from 4.32 percent during FY21-22 to 4.60 percent during FY22-23.
Headquartered in Kolkata, Balmer Lawrie & Company was incorporated in 1924. The company is engaged in the business of Industrial Packaging, Greases and Lubricants, Leather Chemicals, Logistic Services and Infrastructure, Refinery and Oil Field and Travel & Vacation Services in India.
Since 1972, it has been a central public sector undertaking under the administrative control of the Ministry of Petroleum and Natural Gas, GoI.
Written By Vaibhav Patil
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