On Thursday, the micro-cap stock rose 7 percent and hit its 52-week high of Rs 375 from its previous close of Rs 349.8 after the company issued a preferential issue of warrants and equity shares.
According to the filing of Krishna Defence and Allied Industries Limited, the board of the company has considered and approved the preferential issue of warrants and the preferential issue of equity shares.
The company issued 8.6 lakh convertible warrants at Rs. 304 per warrant, which can be exchanged for one fully paid-up equity share at a premium of Rs. 294 per share, for a total value of up to Rs. 26.14 crores.
Additionally, the company issued 14.13 lakh equity shares at Rs 304 per equity share at a premium of Rs. 294/- to the proposed allottees through a preferential issue, totaling not more than Rs. 42.95 crores.
Looking at their financials the net revenue of the company increased by 80 percent year over year, from Rs 19.55 crore in Q2FY23 to Rs 35.23 crore in Q2FY24. In addition, the company’s net profit rose by 112 percent year over year, from Rs 1.24 crores in Q2FY23 to Rs 2.63 crores in Q2FY24.
The company has a low debt-to-equity ratio of 0.51 with a return on equity ratio of 18 percent, a return on capital employed of 15 percent, and a net profit margin of 8 percent.
Krishna Defence and Allied Industries Limited is a micro-cap company with a market capitalization of Rs 458 crores. The promoter owns 73.38 percent of the company, the general public owns 26.35 percent, and domestic institutional investors own 0.27 percent.
The share price has risen 90 percent in the last six months and 140 percent in the year to date. For instance, if an investor invested Rs 1 Lakhs a year ago the current value would be Rs 2.4 lakhs.
Krishna Defence and Allied Industries Limited, founded in 1996, develops, manufactures, and designs Defense Application Products, Kitchen, and Dairy Equipment Products. It has two manufacturing plants in Gujarat, in the Kalol and Halol districts near Vadodara.
Written by Sriram KV
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