A small-cap multibagger stock that delivered multibagger returns in the past three years has announced a 2:1 bonus issue. At 12:05 Pm, its shares were trading at ₹ 222.95 apiece on the National Stock Exchange (NSE).
Lancer Container Lines informed the exchanges that its board has approved a bonus issue in the ratio of 2:1. Therefore two bonus equity shares of the face value of ₹ 5 each will be allotted for every equity share held by its shareholders on the record date. The company has fixed Saturday, September 23, 2023, as the record date for this purpose.
The company will be issuing around 12.62 crore bonus shares amounting to ₹ 63.14 crores, subject to shareholder approval. These shares are being issued out of the company’s free reserves and security premium account, available as of March 31, 2023.
Lancer Container Lines reported a 6.25 percent increase in its consolidated net profit to ₹ 14.12 crores in the April to June quarter (Q1FY24), compared to ₹ 13.29 crores in the corresponding quarter of the previous year (Q1FY23). Its revenue declined to ₹ 164.25 crores in Q1FY24, compared to ₹ 231.68 crores in Q1FY23.
The company’s share price increased by a massive 3247.60 percent in the past three years, from ₹ 6.66 to the current level to deliver multibagger returns. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares three years ago, the value of their holdings would have been ₹ 33.47 lakhs today!
Lancer Container Lines provides integrated shipping and logistics solutions. It is engaged in the coastal water transport services of intermodal containers by container ships and the sale of second-hand shipping containers.
With a market capitalization of ₹ 945 crores, Lancer Container Lines is a small-cap company. It has a high return on equity of 41.89 percent and a debt-to-equity ratio of 1.54. Its shares were trading at a price-to-earnings ratio (P/E) of 18.20, which is higher than the industry P/E of 1.78, indicating that the stock might be overvalued as compared to its peers.
As per the shareholding pattern, the company’s promoters hold a 53.92 percent stake in it, followed by retail investors with 28.59 percent and foreign institutions with 17.49 percent.
Written by Simran Bafna
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