The shares of Rossell India Ltd opened at Rs 226.70 levels on Wednesday and rallied during the day to end after hitting an upper circuit of 20 percent at Rs 273 levels.
Rossell India started as Rossell Tea Limited. Over the years, the company diversified into the Aviation and Defence manufacturing segment.
A few weeks ago, the company set in motion the process to form two separate companies by demerging its tea and aerospace divisions. The management aims to pursue growth opportunities in two disparate lines of business.
The demerger is set to be completed within the next year. The shares of their new company aerospace division will be listed on NSE and BSE. The shareholders of Rossell India will get one share of the new company for every share held in the present company.
In Q3FY23, the company reported total revenue from operations of Rs 97.26 Crore, of which 57 percent was contributed by their tea business while the remaining 43 percent was contributed by their aerospace division.
Their net profit stood at Rs 25 lakhs in the quarter under review compared to a profit of Rs 5.71 Crore in the same period the year earlier. The major decline was attributed to the increase in expenses.
After posting the results, the stock has been on a downward trend and has shed approximately 14 percent in a month. However, on a yearly basis, the stock has delivered a multibagger return of 105 percent.
The small-cap stock has a market capitalization of Rs 1,031 Crore and a dividend yield of 0.11 percent. The promoters of the company hold a 74.8 percent stake with zero shares pledged while the FIIs hold a 1.48 percent stake.
Written by Anoushka Roy
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