Khamdenu Ltd, an iron and steel products maker trading as a smallcap on BSE, has announced the record date for its first-ever stock split in the ratio of 1:10. However, despite the stock split announcement, Kamdhenu shares ended lower by 4% on weekly basis. The stock is currently below Rs 500, and its one share will be split into ten smaller shares.
Khamdenu Ltd Share Price:
After market hours of December 13, Khamdenu stock ended at Rs 499.65 apiece, down by 2.4% on BSE, with a market cap of Rs 1,385.94 crore. In the trading week from December 9th to 13th, the stock plunged by 3.6%, while in six months, the downside is about 9.1% on BSE. Nonetheless, year-to-date, the stock has zoomed by 37.36%.
The stock's 52-week high and low is at Rs 672.15 apiece and Rs 265.80 apiece respectively. The stock's price-to-equity ratio is at 23.32x, and the return on equity is healthy at 24.94% as of December 13.
Khamdhenu Stock Split:
As per the regulatory filing, Khamdenu announced that it has fixed Wednesday, January 8, 2025, as the Record Date for determining entitlement of Equity Shareholders for the purpose of subdivision/split of existing Equity Shares of the Company having a face value of Rs. 10/ each fully paid-up into Equity Shares having face value of Re. 1/ each fully paid‐up, ranking pari‐passu in all respects.
The stock split ratio is 1:10 and is for the first time by Khamdenu.
Why listed companies carry stock split?
As per Motilal Oswal's blog, a stock split, as the name suggests, is the reduction in the face value of a stock and thereby a corresponding increase in the number of outstanding shares. The prime intention of a stock split is to improve the liquidity in the stock, and thereby make it more affordable for investors. Companies resort to stock splits when they realise that the price of their shares is either too steep or beyond the price levels of peer companies.
Khamdhenu Stock Fundamentals:
Here are the key fundamentals for stock analysis on Khamdhenu as per Trendlyne data:
- Price to Earning Ratio is 23.28, lower than its sector PE ratio of 29.32.
- Stock Price rose 76.55% and outperformed its sector by 32.53% in the past year.
- Debt to Equity Ratio is zero as the company is debt-free.
- Return on Equity(ROE) for the last financial year was 21.11%, more than 20% in the last financial year, indicating an efficient use of shareholder's capital to generate profit.
- Mutual Fund Holding remained the same in the last quarter at 0.18%.
- Promoter Share Holding decreased by 7.21% in the most recent quarter to 49.83%.
- Interest Coverage Ratio is 122.51, higher than 1.5. This means that it is able to meet its interest payments comfortably with its earnings (EBIT).
- Promoter Pledges are zero.
About Khamdhenu:
Kamdhenu Limited is a well established flagship company operating in the business of steel manufacturing since 1995. In order to bring more transparency and dynamism to the operations of the company, Kamdhenu Limited ventured into Franchisee Business Model.
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