Shares of this microcap company fell around 5 percent in Thursday’s trading session after the board announced a stock split in the ratio 1:10. In one year, the shares have delivered a whooping 218 percent returns to its shareholders in one year.
Price Movement:
With a market capitalisation of Rs. 622 crores, the shares of Cellecor Gadgets Ltd started Thursday’s trading session on a flatter note at Rs. 313.50 compared to its previous close of Rs. 306.30. During the trading session, the shares hit a low of Rs. 291, making a loss of around 5 percent and are currently trading at Rs. 293 apiece.
What Happened:
According to the exchange filing, the Board of Directors of the company considered and approved the stock split in the ratio of 1:10.
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 Re. 1 each, subject to approval from shareholders and other necessary regulatory approvals.
Additionally, the company’s board has fixed 09th August 2024 as the Record Date for the purpose of determining the eligibility of shareholders for the proposed sub-division/split in nominal value of the Equity Shares of the company.
Financials:
Looking at the company’s financial statements, the revenue zoomed by 39 percent from Rs. 210 crores during the H1FY24 to Rs. 291 crores in H2FY24. In addition, the net profits increased by 29 percent from Rs. 7 crores to Rs. 9 crores during the same period.
Future Outlook:
To benefit from the PLI schemes announced by the Government of India, the company’s management is intending to start its own manufacturing facilities, as a measure of backward integration. Further, it has set an ambitious target of achieving a revenue of Rs. 1,000 crores.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 17.89 percent and a return on capital employed (RoCE) of 32.20 percent for the period spanning FY23-24. Additionally, during the same timeframe, the net profit margin stood at 3.21 percent.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters control 51.54 percent of the stakes, while FIIs hold 0.77 percent, DIIs own 3.91 percent, and retail investors account for the remaining 43.78 percent of the stakes.
Company Profile:
Headquartered in Delhi, Cellecor Gadgets was incorporated in 2020, The company is engaged in the procurement, branding, and distribution of televisions, mobile phones, Smart Wearables, mobile accessories, smart watches, and neckbands.
Written By Vaibhav Patil
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