Shares of this penny stock under Rs 10 hit the 2 percent upper circuit in Wednesday’s trading session after the company’s Board declared stock split in the ratio of 1:5. In the last six months, the company’s stock has delivered more than 200 percent returns for its stakeholders.
With a market capitalization of Rs 86 crores, the stocks of Avance Technologies Limited opened their trading hour on Wednesday by hitting its 2 percent upper circuit at Rs 2.16 and currently is locked at the same price.
One of the prime reasons for the IT company’s stock price to surge today is pertaining to a recent exchange filing published that pertains to an announcement regarding the company’s Board of Directors approving a stock split in the ratio of 1:5.
The same means a sub-division of the equity shares from one equity share having a face value of Rs 5 each into 5 equity shares having face value of Rs 1 each. Moreover, the company has declared the Record Date for the abovementioned stock split as 10th November 2023.
During the recent financial years, the company has successfully reported an increase in the operating revenues and after-tax profit numbers with the former increasing from Rs 11.52 crores during FY21-22 to Rs 30.53 crores during FY22-23, and, the latter being reported at Rs 41 lakhs during the most recent financial year.
Having a ‘nil’ debt-to-equity ratio, the company’s profit margins have also come into the positive side and were reported at 1.32 percent during FY22-23.
As per the shareholding data for the quarter ended September 2023, the company’s Promoters just hold a 0.68 percent stake, and the Public (retail) investors hold the remaining 99.32 percent stake in the company.
Avance Technologies Limited is involved in the business of trading information technology (IT) software products. The company’s products and services include enterprise mobile marketing, short code services, electronic mail, web integration, mobile marketing solution suite, etc.
Written by Amit Madnani
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