On Monday’s trading session, the shares of a company engaged in the manufacture and sale of dairy products surged by 3.5 percent to Rs. 729 on BSE, after the Board of the company fixed a record date for 1:1 bonus shares as well as a 2:1 stock split.
At 12:09 p.m., the shares of Milkfood Limited were trading in the green at Rs. 712, up by 1.05 percent, as against its previous closing price of Rs. 704.6, with a market cap of Rs. 434.5 crores.
What’s the News:
As per the latest regulatory filings with the BSE, the Board of Milkfood Limited has fixed 13th August 2024 as the Record date for the purpose of sub-division of the equity shares as well as issuance of Bonus Shares.
On 25th June, the company’s Board approved the stock split in a 2:1 ratio, with 2 equity shares of a face value of Rs. 5 each for every 1 equity share of a face value of Rs. 10 each.
Further, the Board also approved the Bonus Issue in a 1:1 ratio, where 1 Bonus Share will be given to the eligible shareholders for every 1 existing equity share held in the company.
Financials:
The company experienced a fall in its revenue from operations, showing a year-on-year decline of 6.5 percent from Rs. 467.4 crores in FY22-23 to Rs. 437 crores in FY23-24.
Similarly, its net profit decreased during the same period from Rs. 9.7 crores to Rs. 7.12 crores, indicating a decline of around 26.6 percent YoY.
Stock Performance:
The stock has delivered positive returns of nearly 15 percent in one year as well as around 25.6 percent returns in the last six months. So far in 2024, the shares of Milkfood Limited have given about 17.4 percent of positive returns.
About the Company:
Milkfood Limited operates in a single segment and is engaged in the manufacture and sales of dairy products, that is, pure ghee, skimmed milk powder, and whole milk powder.
The company has two manufacturing locations, one in the state of Punjab at Patiala and the other in the state of Uttar Pradesh (UP) at Moradabad.
Written by Shivani Singh
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