Shares of this multibagger stock under Rs 50 jumped around 3.50 percent in Tuesday’s trading session after the company provided multiple business updates to its stakeholders. All of the shareholding in the company is represented by the public (retail) investors.
With a market capitalization of Rs 14.21 crores, the stocks of Franklin Industries Limited started their trading session on Tuesday at Rs 39.90 and closed at Rs 39.30, gaining approximately 3.50 percent as compared to the previous close of Rs 38 apiece.
Such bullish behavior in the company’s stock was witnessed after the company, via a recent filing with the exchange, gave some updates on its business activities.
Firstly, the company intimated about the commencement of a new Business Venture in ‘Contract Farming’ offering significant potential for expansion and innovation within the business framework of the company.
In addition to the above, the company intimated that the Board of Directors will be held on 27th November 2023 to consider the sub-division of the face value of equity Shares of the Company.
During the recent financial quarters, the company reported an increase in its prime business indicators such as operating revenues and net profits. The former increased from Rs 7.27 crores during Q1FY23-24 to Rs 8.53 crores during Q2FY23-24, and, the latter, during the same time horizon, rose from Rs 60 lakhs to Rs 75 lakhs.
The company’s profitability metrics, in congruence with the pattern above, increased during the recent period with the return on equity (RoE) moving from 0.18 percent during FY21-22 to 5.37 percent during FY22-23. In addition, the return on capital employed (RoCE) shifted from 0.45 percent to 7.24 percent.
Franklin Industries Limited is engaged in the business of trading agricultural commodities and jewellery products. The company operates through two business segments, i.e., wholesale trading of Agriculture Commodities and Jewellery. The company’s major revenue contributor is the ‘Jewellery’ business.
Written by Amit Madnani