1:1 Bonus Issue: This Week, Below Rs 300, Multibagger Penny Stock Will Turn Ex-Bonus; Up 358% From Lows

Nidhi Granites, a penny stock priced under Rs 300, is the first of several bonus issue incentives that will be awarded at the beginning of May. This week, the manufacturer of building materials will go ex-bonus in exchange for bonus shares at a 1:1 ratio. The price fell to Rs 267.75 a share last week, 5% over its 52-week high.

Share Price of Nidhi Granites: 1:1 Bonus: This week, multibagger penny stock (up 358%) will become ex-bonus.

Nidhi’s stock price reached a new 52-week high on Friday of Rs 267.75 a share, a 5% upper circuit. Since the stock’s 52-week low of Rs 58.50 per share, it has increased by 358%.

Nidhi Granites Bonus Issue: The firm intends to issue bonus shares at a ratio of 1:1, meaning that for every existing equity share of Rs. 10 that shareholders of the company possessed as of the Record Date, one new bonus equity share of Rs. 10 would be issued.

Thus, the ‘Record Date’ for determining the eligibility of shareholders entitled to the issue of Bonus Equity Shares of the Company is Thursday, May 2, 2024.

Bonus shares are provided to current shareholders of listed firms at no cost to them based on the performance of such companies’ corresponding fiscal years. Bonus issues occur when corporations issue additional equity shares in a certain ratio on existing shares, but the face value of the shares stays the same after the bonus.

Granites of Nidhi About: Originally founded in 1981, the business was taken over in 2021 and is now led by Darpan Deepak Shah, Managing Director, and Non-Ex Chairman Devan Narendra Pandya. The Company’s first commercial venture was granite blocks and tiles.

On May 10, 2023, the firm bought 10,000 equity shares of Yug Fashion Garments Private Limited, or 100% of the company’s face value, for Rs. 10/-. As a result, the company became the sole owner of the subsidiary. The company is having difficulties with its primary business operations, therefore in order to make the most use of its resources, it has begun concentrating on its securities trading business.

basics of Nidhi Granites: The following are the basics for the stock analysis of Nidhi Granites based on Trendlyne data:

– Last year’s Annual Revenue increased by 61.04% to ₹25.68 Cr. The average revenue increase for its industry for the most recent fiscal year was 17.28%.

– Last year’s Annual Net Profit increased by 43.45% to ₹0.44 Cr. The average net profit increase for its industry for the most recent fiscal year was 81.63%.

– The stock price increased by 275% during the previous year, outperforming its industry by 202.93%.

– The healthy debt to equity ratio of 0.24 is less than 1. This suggests that equity is the primary source of financing for its assets.

– The promoter share holding remained constant at 66.75% throughout the last quarter.

– There are no promoter pledges.

– Quarterly Revenue reached ₹10.77 Cr, up 55.7% YoY. The average revenue increase YoY for its sector for the quarter was 12.66%.

– Quarterly Net Profit was ₹0.45 Cr, up 271.18% YoY. The average net profit increase YoY for its sector for the quarter was -1.64%.

– The price to earnings ratio is 170.87, which is more than the 40.01 industry PE ratio.

– The most recent financial year’s Return on Equity (ROE), which was less than 10% at 4.67%, showed an ineffective use of shareholder money to produce profit.

– The interest coverage ratio is more than 1.5, at 6.18. This indicates that it has enough profits (EBIT) to cover its interest payments.