Multibagger Penny Stock: 28th August Record Date For Reverse Stock Split; Buy Below Rs 10?

Shekhawati Industries Ltd. was founded in 1990 and produces knitted fabrics, texturising yarn, and twisting yarn for both domestic and foreign markets. In just one year, Shekhawati Industries, a microcap textile firm, generated a multibagger return of 1425 per cent, drawing the interest of investors with its announcement of a reverse stock split.

Shekhawati Industries Reverse Stock Split

"The Board has fixed the Record Date 28.08.2024 for taking record of the Members of the Company for the purpose of consolidation of the equity shares of the Company (1 fully paid up equity shares of face value of Rs. 1/- each into 1 fully paid up equity share of face value of Rs. 10/- each) for which the company has passed the Special Resolution through 33rd Annual General Meeting of the Company held on 02.07.2024 through Video Conferencing ("VC")/Other Audio Visual Means ("OAVM")," the company said in a stock exchange filing.

"We are pleased to inform you that pursuant to the provision of Regulation 42 of SEBI Listing Regulations, it is hereby informed that the Board of Directors has fixed 28.08.2024 as the Record Date for the purpose of ascertaining the eligibility of shareholders for consolidation of the equity shares of the Company (10 fully paid-up equity shares of face value of Rs. 1/- each into 1 fully paid-up equity share of face value of Rs. 10/- each)," the company further informed stock exchanges.

Shekhawati Industries Share Price Target

"Shekhawati Industries's price movement suggests that the stock is currently not favourable for investing and trading, especially due to its low liquidity. Hence, I advise investors who prefer safe trading or investing options to avoid this stock. However, those willing to take on some risk and bet on its stock's potential may consider exploring it if the price dips to the Rs. 5-6 range. They can hold this stock for 1-6 months and expect a target price of Rs. 7-12 post-consolidation. However, I advise setting a stop loss at Rs. 4 and limiting their exposure, as this stock is currently unsuitable for those with low-risk taking capacity or little patience," commented V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

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