1:10 Stock Split: 29th March Fixed As Record Date; Buy The Metal Stock To Be Eligible?

In the capital goods industry, Dhatre Udyog Ltd is a small-cap company. As of Thursday's closing session, its market valuation was Rs 236.92 Cr. Headquartered in Vizianagram, Andhra Pradesh, India, Dhatre Udyog Limited (DUL) is a secondary steel producer that was established as a private limited company in 1996. The firm offers a variety of products, including wire rod coils in various sizes, flats, squares, rounds, MS Grade Angels, and rebars. Dhatre Udyog is among the multibagger stocks of recent times in Dalal Street as it has generated a 162.20% return in 1 year and 83.13% in 6 months. However, the stock is in focus after the company has fixed record date for stock split. Following the announcement the stock ended 1.12% higher at Rs 217.45 apiece on BSE on Thursday.

Dhatre Udyog Stock Split

For the purpose of determining the eligibility of shareholders for the purpose of sub-division /split of each equity share having face value of Rs. 10/- (Rupees Ten only) each, fully paid-up into ten (10) equity shares having face value of Rs. 1/- (Rupee One only) each fully paid-up, the company has fixed Friday, 29th March as the record date according Dhatre Udyog.

Pursuant to the shareholders' approval obtained though postal ballot on March 10, 2024, the Board of Directors of the company has fixed the above record date for the purpose of subdivision/split of 1 equity share of the company having a face value of Rs. 10/- each into 10 equity shares of the company having face value of Re. 1 each, as per a stock exchange filing.

"We wish to inform you that pursuant to Regulation 42 of the SEBI (LODR) Regulations, 2015, the Board of Directors of the Company passed the Resolution at the Board Meeting held today, 12th March, 2024, and fixed the 'Record Date' i.e. 'Friday, March 29, 2024' for the purpose of sub-division /split of each equity share having face value of Rs. 10/- (Rupees Ten only) each, fully paid-up into Ten (10) equity shares having face value of Rs. 1/- (Rupees One only) each fully paid-up," said Dhatre Udyog in a BSE filing on 12th March.

Dhatre Udyog News

"We wish to inform you that pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, with a view of long-term prospects, the Board of Directors of the Company passed the Resolution at the Board Meeting to diversify its business by entering into the business of Real Estate in addition to its existing business. The proposed residential project has received drawing approval from the Adityapur Municipal Corporation for the construction of a premium residential project in Adityapur, Jamshedpur. The project is planned to have a total built-up area of 4,85,000 sq.ft," said Dhatre Udyog in a regulatory filing on 12.03.2024.

Dhatre Udyog Financials

On a consolidated basis, the company recorded revenue from operations of Rs 54.33 crore in the December 2023 quarter up 28.06% from Rs. 42.43 crore in the December 2022 quarter. Its net profit stood at Rs. 3.62 crore in Q3FY24 up 191.44% from Rs. 1.24 crore in Q3FY23. The company said its quarterly consolidated EBITDA reached Rs. 5.17 crore in the quarter reported of the current fiscal up 166.49% from Rs. 1.94 crore in the same quarter of the previous fiscal.

Dhatre Udyog Share Price Target

Dhatre Udyog Ltd (also known as Narayani Steels Limited) is engaged in the business of manufacturing and trading iron and steel products. It is a small cap and delivered over 150% return YoY. Worth to understood it is 6.37x as volatile as compared to the benchmark index Nifty and it could be added to the portfolio up to a certain level. The metal sector is looking more bullish in upcoming months and companies that are fundamentally strong, have good client-based and production capacity, will perform better. It is not a dividend-paying stock as it has delivered zero DY in the past 5 years and such a plan in future too. Company EPS is surging and in the last 2 years, it showed a growth in its Net Income too.

Its valuation compared to its peers is on the truly higher side. Its current PE is 21.34 whereas the sector PE is minus 18.40. Considering all these aspects with its past performance and sectors' projected growth, it could be a good bet for those who have high-risk exposure or are willing to invest a small position in high growth-oriented stocks. Consider buying in parts in the range of 180 to 202. The current market price is 215, so wait for some pullback move to get discounted buying. Do expect targets ranging from 235 to 380 within a year. Follow a strict stop loss at 150", VLA Ambala, SEBI RA and Founder of SMT Stock Market Today, suggested while reviewing DHATRE Udyog exclusively for Good Returns.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.