The Board of Sawaca Business Machines at its meeting held on 13 April 2022 had recommended the proposal for a stock split of its equity shares. Currently, these shares have a face value of ₹10 each and they are being split into shares of ₹ 1 each. The shares will quote on an ex-split basis from 27th May 2022.
Further, the board had recommended an issue of new equity bonus shares in the proportion of 10 equity shares of ₹1 each for every 100 existing equity shares of ₹ 1 each held by the shareholders of the company. The ex-date for the bonus is 27th May 2022.
Sawaca Business Machines Ltd is a multibagger stock that gave multibagger returns of 723.14% in three months. The shares of the company surged from ₹5.23 levels in November 2021 to ₹ 43.05 in February 2022. However, its share price tumbled thereafter. Currently, the shares are locked at a 5% upper circuit at a price of ₹ 15.10 apiece. Even though the share price has tumbled, it has given multibagger returns of 188.72% in the past six months.
If an investor would have invested ₹1,00,000 in the shares of the company six months ago, the value of their holdings would have been ₹ 2,88,720 today!
Earlier this month, the company declared its results. On a standalone basis, its sales rose 71.22% from ₹ 1.39 crores in the previous quarter to ₹ 2.38 crores in the March quarter. At the same time, its net profit increased from ₹0.18 crores to ₹ 0.22 crores.
On a yearly basis, its net profit rose 86.36% to ₹ 0.41 crore in the year ended March 2022 as against ₹ 0.22 crore during the previous year ended March 2021. Its sales rose 9.74% to ₹ 2.93 crores in the year ended March 2022 as against ₹ 2.67 crores during the previous year ended March 2021.
Sawaca Business is engaged in the business of sale of various chemical products and scrap material. It is a nano-cap stock with a market capitalization of ₹14.98 crores. On the bright side, its price to earnings ratio is lower than the industry average, it has a low debt to equity ratio of 0.01. It has a decent current ratio of 1.05. It does not have pledged shares.
However, its promoters have decreased their stake in the company from 32.60% in December 2021 to 23.47% in March 2022. Moreover, for the last three years, its average ROE, ROCE and net profit margin and revenue have shown weak growth.
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