446% Gain In 1 Yr: Standard Capital Markets Hits Upper Circuit As Board Okays 1:10 Stock Split

On Tuesday, the shares of Standard Capital Markets were locked in a 2% upper circuit limit at Rs 73.59 apiece level. In the chart pattern, it can be seen that the stock has been hitting the upper circuit since 28th November. The stock has gone up throughout this time, from Rs 55.97 to Rs 73.59 per share, representing a rise of about 32.50%.
Following the approval of a stock split by Standard Capital Markets Ltd.'s board of directors during a Monday board meeting, the stock price saw a surge. The idea of issuing bonus shares and splitting the company's equity 1:10 was accepted by the board.

"In terms of Regulation 42 of SEBI Listing Regulations, the Company has fixed Friday, the 29th Day of December 2023, as the Record Date, for the following purposes, subject to the approval of shareholders at the ensuing Extra-ordinary General Meeting of the Company scheduled to be held on Monday, December 18, 2023," said the company in a stock exchange filing.

The Board has approved 1:10 stock split or 10 to 1 i.e. sub-division of 1 (One) Equity Share of the face value of Rs. 10/- each fully paid-up into 10 (Ten) Equity Shares of the face value of Re. 1/- each fully paid-up. Furthermore, the Board of Standard Capital Markets declared a 2:1 bonus shares, meaning that for every one existing equity share with a face value of Re. 1/-, there would be two (2) bonus equity shares to be allocated to the shareholders whose names will appear on the record book of the company on the record date.

For the quarter that ended in September 2023, the firm declared a standalone net profit of Rs 5.65 Cr, up from Rs 1.42 Cr in the same period in 2022. Compared to Rs 0.09 Cr in the same quarter last year, its net expenses climbed to Rs 0.41 Cr. EBIT was Rs 5.24 Cr in Q2FY24 compared to Rs 1.33 Cr in Q2FY23, according to Standard Capital Markets. Net profit was Rs 2.31 Cr, up from Rs 0.15 Cr in the same period of the previous fiscal year.

In the last 1 year the stock has generated a multibagger return of 446.73% and on a YTD basis the scrip has gained 236.80% so far in 2023. The scrip made a 52-week-high of Rs 96.00 on (05/05/2023) and a 52-week-low of Rs 13.46 on (19/12/2022), implying that at the current market price, the stock has gained 446.73% from its 1-year low and is trading at a discount of 23.34% from its 1 year high. During Q2FY24, the company reported promoters' shareholding of 17.83% and public stake of 82.17%.