The shares of this microcap clocked a 20 percent circuit in Tuesday’s trading session after the company announced a 4:1 bonus issue. In just one month, the stock has delivered more than a 60 percent return to its shareholders.
Price Movemnet:
With a market capitalization of Rs. 154 crores, the shares of Sameera Agro and Infra Ltd started Tuesday’s trading session on a higher note at Rs. 125 compared to its previous close of Rs. 109.65. During the trading session, the shares clocked a 20 percent upper circuit at Rs. 131.55 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced the approval of Bonus Shares by way of capitalization of reserves, to the equity shareholders of the company.
The bonus share is issued in the ratio of 4:1 i.e., 4 new fully paid-up Equity Shares of Rs. 10 each for every 1 existing fully paid-up Equity Share of Rs. 10 each held by the eligible shareholders as on the Record Date (to be determined by the Board) subject to the approval of the shareholders of the company.
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Additionally, as part of its growth strategy, the company is reviewing its ongoing expansion into the distillery business to ensure that the plans for increasing production capacity are well-aligned with its overall growth objectives.
Financials:
Looking at the company’s financial statements, the revenue decreased by around 6 from Rs. 94 crores in H1FY24 to Rs. 88 crores during H2FY24. On the other hand, the net profits declined by 43 percent from Rs. 7 crores to Rs. 4 crores during the same timeframe.
Business Activities
Infrastructure Development: The company focuses on constructing residential and commercial spaces, including apartments, townships, multi-storied complexes, and gated communities.
Agricultural Commodities: Since 2021, the company has expanded into processing, drying, and distributing agricultural products such as pulses and cereals. It has established a network for sourcing and storage of these commodities and is in the process of acquiring additional processing facilities in Andhra Pradesh
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 11.63 percent and a return on capital employed (RoCE) of 15.29 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 5.88 percent.
Shareholding Pattern:
According to the latest shareholding pattern, Promoters hold 69 percent of the shares, and Retail Investors hold the remaining 31 percent.
Company Profile:
Sameera Agro and Infra Limited is a diversified company engaged in infrastructure development, construction, and real estate projects, as well as the processing and distribution of agricultural commodities.
The company develops residential, commercial, and civic infrastructure projects such as bridges, flyovers, and subways. It has a history of developing residential layouts and plots in and around Hyderabad.
Written By Vaibhav Patil
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