Stock Split On The Horizon: Record Date Nears For 1:10 Sub-Division of Shares; Buy This BSE-Listed Stock?

Founded in 1994, Padam Cotton Yarns Limited (PCYL) is a public limited company based in India that produces cotton yarn and provides advisory services. On Tuesday, June 24, the textile stock listed on the BSE was trading at an intraday low of Rs 39.48, down 1.23% from the previous close. As the record date for the 1:10 stock split drew closer, the stock witnessed selling momentum.

Padam Cotton Yarns Stock Split

For the purpose of 1:10 stock split or sub-division of 1 equity share of face value of Rs. 10/- each into 10 equity shares of face value of Re.1/- each, the Board of Directors in its meeting held on Saturday, June 07, 2025 have fixed Friday, 27 June, 2025 as the record date for the purposes of ascertaining the eligibility of shareholders entitled for sub-division of shares by the company, Padam Cotton Yarns confirmed in a regulatory filing.

The record date for Padam Cotton Yarns is June 27. This implies that the split will be available to anybody who has shares as of the end of market hours on June 27. This implies that following the split, stockholders would get ten shares for every one currently owned, and the face value of each share will drop from Rs 10 to Rs 1. The move is solely a move to improve the liquidity of the shares in the stock market and has no effect on an investor's holdings' total value. A shareholder's total holdings, for instance, would be worth Rs 1,00,000 if they owned 100 shares, each valued at Rs 1,000. They will possess 1,000 shares after the split, but the price per share will shift proportionately to Rs 100, maintaining the same overall value.

Padam Cotton Yarns Financials

The company's net sales for the quarter ending in March 2025 were Rs 13.11 crore, up 284934.78% from Rs 0.00 crore for the quarter ending in March 2024, according to Moneycontrol. Its net profit in Q4FY25 was Rs. 2.26 crore, up 714.27% from Rs. 0.37 crore in Q4FY24. From Rs. 0.20 crore in the March 2024 quarter to Rs. 2.99 crore in the March 2025 quarter, EBITDA shot up by 1595%.

Padam Cotton Yarns Share Price Target

"Padam Cotton Yarns stock price is bearish but also oversold on the daily charts, with next support at 34.8. Investors should buy only if the daily close is above the resistance of 43.3 for a target of 51.9 in the near term," commented A R Ramachandran, independent research analyst.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor GoodReturns. The author, nor the brokerage firm nor GoodReturns 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.