Shares of this smallcap company jump around 2 percent after announcing a stock split in the ratio 1:10. The stock has declined approximately 30 percent over the past six months.
Price Movement:
With a market capitalization of Rs. 1,051 crores, the shares of K&R Rail Engineering Ltd started Monday’s trading session on a higher note at Rs. 496.50 compared to its previous close of Rs. 491.60. During the trading session, the shares hit a high of Rs. 509, gaining around 2 percent and are currently trading at Rs. 497 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that the Board of Directors at their meeting held on July 13, 2024, had considered and approved the issue of stock split in the ratio 1:10. This is the first time the company has announced a stock split.
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This means that for every 1 existing Equity Share with a face value of Rs. 10 each, shareholders will receive 10 new Equity Shares with a reduced face value of Rs. 1 each, subject to approval from shareholders and other necessary regulatory approvals.
Financials:
Looking at the company’s financial statements, the revenue increased by 5 percent from Rs. 145.52 crores during the December quarter to Rs. 153.51 crores in the March quarter. On the other hand, the net profits showcased a transition from a net profit of Rs. 1.04 crores to a net loss of Rs. 7.78 crores during the same time period.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters hold 55.81 per cent of the stake and the remaining 44.19 percent of shares are held by Retail Investors.
Customer Base:
K&R Rail Engineering Ltd. has a diverse customer base that includes prestigious clients such as ACC Ltd, BHEL, GMR, JSW, Dalmia Bharat and many others.
Important Financial Ratios:
In terms of key financial metrics, the company reported a return on equity of 13 percent and a return on capital employed of 17 percent for the period spanning FY22-23. Additionally, the net profit margin stood at 1.17 percent during the same timeframe.
Company Profile:
K&R Rail Engineering is a Railway Construction Company providing Engineering Procurement Construction Commissioning Services, including earthworks, bridges and civil works, track works, overhead electrification, signalling and telecommunication (S&T), allied works, mass transportation, and bulk logistics of goods and materials through Indian Railway networks.
Written By Vaibhav Patil
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