Shares of this small-cap stock associated with food products jumped approximately 7 percent in Friday’s trading session after the company’s Board of Directors, in its meeting, fixed the Record Date for its upcoming stock split.
With a market capitalization of Rs 2,363.88 crores, the stocks of Manorama Industries Limited started their trading session on Friday at Rs 1,921.75 and currently trade at Rs 1,988.15, gaining approximately 7 percent compared to the previous closing levels of Rs 1,861.05 apiece.
Such bullish stock price movements are observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated about the fixation of Record Date for stock split.
On Wednesday, February 14th, 2024, the equity shareholders approved the sub-division in the ratio of 1:5, i.e., split of existing 1 fully paid-up equity share having a face value of Rs 10 per share into 5 fully paid-up equity shares having a face value of Rs 2 per share.
In continuation to the same, the company fixed Friday, March 8th, 2024, as the “Record Date” for determining the entitlement of equity shareholders for the abovementioned stock split.
During the recent quarters, the company’s standalone financials portray a dip in numbers as far as the operating revenues and net profits are concerned. The former shifted down from Rs 117 crores during Q2FY24 to Rs 98 crores during Q3FY24, and the latter, keeping the timeframe the same, reduced from Rs 8 crores to Rs 7 crores.
Historically, the company reported positive movements in its profitability ratios with the return on equity (RoE) increasing marginally from 9 percent during FY21-22 to 9.98 percent during FY22-23 and the return on capital employed (RoCE), during the same period, rising from 13.04 percent to 15.74 percent.
As per the recent presentations, the company put forth expansion plans with new investments in setting up new capacity of fractionation and refinery process by 25,000 MT per annum each along with an estimated capex of Rs 65 crores.
Manorama Industries Limited is engaged in the business of manufacturing and supplying exotic as well as specialty fats and oils. The company’s product portfolio includes sal butter, sal fat, sal stearine, mango butter, and several other value-added tailor-made products. The company performs sales of its products within as well as outside India.
Written by Amit Madnani
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