The shares of Chandra Prabhu International Ltd, surged 11.30% on Monday and closed at ₹ 173.30 apiece on the Bombay Stock Exchange (BSE). The company has given multibagger returns and has set the record date for a stock split.
Chandra Prabhu International is engaged in the trading of agricultural food products, coal, fertilizers, petroleum products and synthetic rubber.
The company informed the BSE that its board has considered and approved the subdivision of the equity shares of the company of the face value of ₹ 10 each to equity shares of ₹ 2 each. No resolution was passed for the treatment of fractional entitlements, thus they are not applicable.
The shares with a face value of ₹ 10 shall automatically stand cancelled and be of no effect on and from the Record Date, i.e., November 30, 2022. Eligible members as of the record date will be entitled to receive sub-divided equity shares of ₹ 2 each in lieu of the existing equity shares of ₹ 10 each.
Its share price has increased by more than five-fold as the company has given multibagger returns of 584.98% in the past five years. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹ 6.84 lakhs today!
Chandra Prabhu International’s revenue and net profit show an increasing trend. Its 3-year CAGR revenue growth is at 183.30 per cent, while its 3-year CAGR net profit growth is at 142.44 per cent.
It is a micro-cap company with a market capitalization of ₹ 73 crores. Its shares were trading at a price-to-equity ratio of 3.93, which is very low when compared to the sector PE of 303.94. Therefore, the stock might be highly undervalued and it will be important to do a thorough analysis of its fundamentals, before investing in it.
Written by Simran Bafna
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