100:10 Stock Split Approved: One Rs 15,095.60 Penny Stock To Split Into 100 Shares; Hits New High, 257% Up YTD

Jamshrie Realty, a company engaged in the business of residential commercial projects, holds the status of penny stock on BSE as its market cap is around Rs 105.47 crore. On July 16, this penny stock touched not only its new 52-week high but also a 2% upper circuit. The stock is currently closer to the Rs 15,100 level and emerged as one of the most expensive penny stocks in terms of per share.

So why did this penny stock witness an extraordinary rally in a single day? Why did it only see buyers and no sellers on July 16? That is because the company has received approval for stock split in the ratio of humungous 100:1.

Jamshri Realty is also one of the fastest-performing multibaggers in 2024. YTD, the stock's gains are over 250%, but in 3 months, it alone rallied by over 150%.

Jamshri Realty Share Price:

Jamshri's share price ended at Rs 15,095.60 apiece on July 16, which is its new 52-week high and also 2% upper circuit.

Locked at the new high levels, the stock is currently up by a massive 331.30% from its 52-week low of Rs 3,500 apiece. From the current level, the stock has zoomed by 150.55% in 3 months, while, it rallied by a breathtaking 256.6% on BSE.

However, the stock's price-to-equity ratio is in negative 31.01x. However its return on equity is strong at 83.77%.

Jamshri Realty Stock Split:

In the annual general meeting (AGM) which was held on July 15, Jamshri received approval for a stock split in the ratio of 100:1.

This means that one existing Jamshri stock price at a face value of Rs 1,000 each, will be split into 100 shares having a face value of Rs 10 each. The record and ex-split date will be announced in due course.

How will this affect your Jamshri holding in your portfolio? For instance, if you held 10 shares of Jamshri, then 1 share would be split into 100, and 10 shares would be split into 1,000 eventually.

However, the share capital will remain the same. For example: If one share is at Rs 15,095.60 apiece, then the investment value for holding 10 shares of Jamshri will be Rs 1,50,956. So if 1 share is split into 100, this will lead to a sharp split into the share price value to 1 share at Rs 150.95 (Rs 15095.6 ÷ 100). Cumulatively, though, 1oo shares together still value at Rs 15,095.6 (100 X current price of Rs 15,095.6). And just like that 1,000 shares will be together valued at Rs 1,50,956. Hence, no change in share capital.

Fundamentals of Jamshri Realty:

As per Trendlyne data, the following are the fundamentals of the stock:

- Annual Revenue rose 21.85%, in the last year to ₹6.73 Cr. Its sector's average revenue growth for the last fiscal year was 25.93%.

- Annual Net Profit rose 20.22% in the last year to ₹3.4 Cr. Its sector's average net profit growth for the last fiscal year was 116.22%.

- Stock Price rose 251.06% and outperformed its sector by 121.55% in the past year.

- Debt to Equity Ratio of -5.79 is less than 1 and healthy. This implies that its assets are financed mainly through equity.

- Promoter Share Holding stayed the same in the most recent quarter at 73.56%.

- Promoter Pledges are zero.

- Mutual Fund Holding remained the same in the last quarter at 0%.

- Interest Coverage Ratio is 0.21, less than one. This means that it is unable to pay interest with its earnings (EBIT).

About Jamshri Realty:

Jamshri Realty Limited (formerly known as Jamshri Ranjitsinghji Spinning and Weaving Mills Company Limited) began operations in 1907 as a composite textile mill in Solapur, a Tier-2 city located 240 km from Pune and 300 km from Hyderabad.