Akshar Spintex, a small cap textile company, has recently approved a stock split and seen a significant increase in its stock price. The company’s market capitalization stood at Rs 161.74 Cr during the last trading session. Akshar Spintex is involved in the manufacturing of various types of yarn and has 24,480 spindles with an annual production of 7500 MT in cotton yarn. The company has announced a stock split in a 1:10 ratio and has finalized the record date for the same.
According to a filing submitted by Akshar Spintex to the stock exchange, Pursuant to Regulation 42 of SEBI (LODR) Regulation, 2015, we wish to inform you that the Board of Directors of the Company, at its Board Meeting held today i.e. Friday, 30th June, 2023, have fixed the Record Date as Monday, 31st July, 2023 for the purpose of Sub-Division/Split of every 1 (One) Equity Share of face value of Rs. 10/- (Rupees Ten Only) each into 10 (Ten) Equity Shares of face value of Rs. 1/- (Rupee One Only) each.
In terms of financial performance, Akshar Spintex reported a standalone net income of Rs 38.13 Cr during the March 2023 quarter, compared to Rs 48.01 Cr in the same quarter of the previous year. Meanwhile, its net expenses stood at Rs 36.04 Cr, down from Rs 44.25 Cr reported during the corresponding quarter of FY22. The company’s EBIT for Q4FY23 reached Rs 2.09 Cr, compared to Rs 3.77 Cr in Q4FY22, and its net profit stood at Rs 3.44 Cr, up from Rs 0.37 Cr in the corresponding quarter of the previous year.
On the stock market, Akshar Spintex shares closed at Rs 65 apiece on the NSE, representing a 0.46% increase from the previous close of Rs 64.70. The stock hit a 52-week high of Rs 128.85 on August 23, 2022, and a 52-week low of Rs 29.65 on November 2, 2022. Currently, the stock is trading at 49.55% below its 1-year high and 119.22% above its 1-year low.
As of Q4FY23, the company’s promoter shareholding stands at 43.75%, while the public stake is at 56.25%.
In conclusion, Akshar Spintex’s approval of a stock split and the subsequent increase in its stock price is expected to attract investors. With its strong presence in the textile industry, the company’s move to expand its equity shares is likely to enhance liquidity and generate further interest.
