Shares of this micro-cap stock associated with the ‘textile’ industry jumped approximately 14 percent in Monday’s trading session after the company’s Board set the Record Date for the issuance of Bonus shares in the ratio of 1:2.
With a market capitalization of Rs 382.01 crores, the stocks of M.K. Exim (India) Limited started their trading session on Monday at Rs 136.40 and currently trade at Rs 142.05, gaining around 14 percent as compared to the previous close of Rs 124.60 apiece.
Such bullish behavior in the company’s stock price is witnessed after a regulatory filing with the Bombay Stock Exchange (BSE) intimating the fixation of the Record Date for the issuance of Bonus equity shares.
The company has set 17th January 2024 as the Record Date for Bonus issue in the ratio of 1:2, i.e., issuance of one equity share of Rs 10 each for every two equity shares of Rs 10 each held. The company received approval from its shareholders through a postal ballot on Thursday, 04th January 2024.
The latest company financials, on a standalone basis, represent a marginal increase in the basic business parameters, viz, operating revenues as well as net profits. The former moved up from Rs 25 crores during Q1FY23-24 to Rs 26 crores during Q2FY23-24, and, the latter, during the same period, rose from Rs 3 crores to Rs 4 crores.
Due to annual cost pressure, the profitability ratios of the company took a hit with the return on equity (RoE) reducing from 28.91 percent during FY21-22 to 26.91 percent during FY22-23, and, the return on capital employed (RoCE), in congruence, shifting down from 36.95 percent to 35.01 percent.
On a positive note, the company’s debt-to-equity ratio, despite being in the desired range, further reduced from 0.08 times during FY21-22 to 0.04 times during FY22-23. In addition, the company’s interest coverage ratio rose consistently with the most recent movement being an upward shift from 52.27 during FY21-22 to 108.76 during FY22-23.
As per the shareholding data available for the quarter ended September 2023, the company’s Promoters hold a 41.97 percent stake, and the Public (retail) investors hold a 57.99 percent stake in the company.
Incorporated in 1992, M.K. Exim (India) Limited is engaged in the business of manufacturing and selling readymade garments, fabrics, and jewellery in India. The company operates through various segments, i.e., finished fabrics, garments & plastic material, and cosmetics segments.
Written by Amit Madnani
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