The shares of the company, which operates in the FMCG sector, surged to a 20% upper limit after the board approved a bonus issue in a 4:1 ratio.
On Thursday’s trade, Goel Food Products Ltd shares hit a 20% upper circuit, reaching a 52-week high price of ₹49.32 apiece on the Stock Exchange. The company has a market capitalization of ₹93 crore.
What Happened: As per the company’s exchange filing, the Board announced the approval of issuing Bonus Shares at a ratio of 4:1. which means the company would issue four bonus shares for every share owned by existing shareholders. The board has proposed an allotment of 1,50,81,600 equity shares of ₹10 each as bonus shares.
Financials: Goel Food Products Ltd experienced a 7.2% year-on-year increase in revenue, growing from ₹ 22.48 crore in FY 22-23 to ₹ 24.10 crore in FY 23-24. Additionally, the net profit rose by 24%, from ₹ 4.03 crore to ₹ 5 crore, during the same period.
According to the latest shareholding pattern, the promoters hold a 73.82 percent stake, while retail investors hold a 26.17 percent stake in the company.
Over the last six months, Goel Food Products Ltd shares have appreciated by 64%, and over the last 12 months, they have surged by an impressive 44%.
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About the company: Goel Food Products Ltd is in the business of Banquets, Hotels, and catering industry. Established in 1996, the company operates several banquet halls, Indian sweets and snack shops, a hotel, and a guest house.
It specializes in organizing various events, including weddings, corporate gatherings, and other celebrations, while also providing Indian snacks and sweets through its retail outlets.
In addition to event management, Goel Food Products is involved in the manufacturing and export of traditional Indian snacks such as Bhujia, Rossogolla, and Sohan Papdi. This diversification into food products complements its core business in hospitality and event management.
Since Goel Food Products Ltd belongs to the Penny stocks category with a low market capitalization and a low trading volume. So Individual investors must conduct extensive research before investing in penny stocks, because such penny stocks are volatile in nature, are rarely traded, and a small number of trades may result in a circuit limit.
Written by Omkar Chitnis
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