Shares of this microcap company, which is in the business of Pan Masala and Gutka under the brand Pan Parag and in the Real Estate business was up by 7.5 percent intraday trade to Rs.210 per share, following the announcement of the bonus share issue.
Price Variation
In Monday’s session, Kothari Products’s share price jumped 7.5 percent to a day’s high of Rs.210 per share, from the previous close of Rs.195.20 apiece, the stock reiterated from the day’s high and was trading at Rs. 201.44 which is 3.20 percent from the previous closing price. It has delivered returns of over 58 percent in the past year and has outperformed the Nifty Index.
What happened
The Board of Directors of Kothari Products Ltd had announced 1:1 bonus shares which is 1 share held by the shareholder they are eligible for another share for free and the company would create bonus shares out of profits with an estimated date that would be credited on 12th March 2025. The free reserves required for the implementation of the bonus issue is Rs. 29.84 crore.
Financial Performance
Looking at the company’s financials, Kothari Products reported a revenue from operation of Rs.266 crore for Q2FY24, marking a flat percent increase from Rs.266 crore in Q2FY23. However, the Loss After Tax (LAT) was Rs.120 crore, which saw a decline from a profit of Rs.0.44 crore in the previous year.
The return on equity was 2.21 percent and the return on capital employed stood at 2.42 percent in FY24. The net profit margin stood at 2.62 percent.
Shareholding Pattern
As of September 2024, The company promoters were holding around 74.97 percent and the public were holding around 25.03 percent.
Company Profile
Kothari Products Limited was founded in 1983. It is a public company that manufactures and exports consumer products such as Pan Parag (pan masala), flavored chewing tobacco, and coconut oil. The company also operates in real estate and international trade, focusing on investments in commercial and residential projects. Their business model focuses on innovative packaging, quality production, and strategic partnerships for real estate ventures. Kothari Products aims to expand its market presence while maintaining a commitment to sustainability and superior product design.
Written by – Santhosh S
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