1:5 Split Next Week: Smallcap Paint Stock Rises 64% In 1-Year; 500 Shares To Be Sub-divided Into 2,500 Shares

Smallcap paint company, Kamdhenu Ventures is set to split next week in the ratio of 1:5. Ahead of the sub-division, Kamdhenu turned its 2024 losses into gains by just rising over 6.34% on June 7. The stock is a little over Rs 175 at a face value of Rs 5 each. YTD, the stock is up by 2.40%, while in a year, the stock gained by 64% on BSE.

After market hours of Friday's trade, Kamdhenu Ventures' share price ended at Rs 175.20 apiece on BSE with gains of 6.3%. The market cap of the company is about Rs 1,101.50 crore. The stock's 52-week high and low are at Rs 245 apiece and Rs 105.15 apiece respectively.

Kamdhenu Ventures Stock Split:

The company has fixed Friday, June 14, 2024, as the record date for determining entitlement of Equity Shareholders for sub-division / split of existing Equity Shares of the Company from Equity Shares having face value of Rs. 5/- (Rupees Five only) each fully paid-up into Equity Shares having face value of Rs. 1/- (Rupees One only) each fully paid-up, ranking pari-passu in all respects.

Accordingly, the stock split ratio is 1:5.

Share splits mean that listed companies can split their existing shares into a ratio decided by them for a host of reasons. These could be done to improve liquidity, lessen the value of the stock, make it cheaper or simply attract new buying from both existing and new investors.

How stock split will multiply your portfolio in Kamdhenu? For example, if you held 100 shares of Kamdhenu at a face value of Rs 5 each, it will be subdivided into 500 shares (100 X 5) at a face value of Rs 1 each. Similarly, if you held 500 shares of Kamdhenu, then your portfolio will multiply to 2,500 shares (500x5). The overall share capital won't change, only the number of shares in your portfolio will increase.

For instance, 100 shares at a face value of Rs 5 each at a share price of Rs 175.20 apiece are currently worth Rs 17,520. But with 100 shares splitting into a 1:5 ratio, becomes 500 shares at a face value of Rs 1 each at a share price of Rs 35.04 (Rs 175.20/5), then too your investment value will remain at Rs 17,520. The same will be the case for holding 500 shares 1000 shares or 2000 shares in Kamdhenu.

Kamdhenu Ventures Outlook:

In Q4FY24, the company reported a net profit of Rs 4.2 crore, compared to a net loss of Rs 2.5 crore in the same quarter a year ago. EBITDA stood at Rs 7.3 crore, up from Rs 0.1 crore in Q4FY23, while EBITDA margins are at 8.5% expanding from 0.2% in Q4 of last year. Revenue meanwhile stood at Rs 85.1 crore, registering a growth of a whopping 20% YoY.

Saurabh Agarwal, Managing Director last month said, "FY24 has been a turnaround year for Kamdhenu Ventures. Revenues have grown by 12% YoY to Rs. 292 crores whereas EBITDA and PAT have significantly turned positive compared to last year. We have achieved EBITDA Margins of 7.7% for FY24. This can be attributed to achieving strong economies of scale coupled with operating leverage playing out."

He added, "The Average Selling Price per KG/Ltr. for FY24 stood at Rs. 90, an increase of 14% over FY23. This is mainly due to increased premiumization of our products."

Looking ahead, Agarwal said, the company's r focus lies in further elevating our product portfolio through increased premiumization and seizing opportunities in the evolving demand landscape. By continuously innovating and adapting to changing customer preferences, Kamdhenu anticipates sustaining its growth trajectory and enhancing profitability in the years to come.

Kamdhenu Ventures Limited (Kamdhenu Paints), established in 2008, is a leading brand in the Indian decorative paints segment. Kamdhenu Paints is committed to providing a comprehensive range of high-quality paint products that meet the diverse needs of our customers. The company's product range includes a wide selection of exterior & interior emulsions, water-based primers, wood finishes, textured & designer paints, and construction chemicals. By offering such an extensive range of products, the company aims to position Kamdhenu as a one-stop-shop for all of our customers' construction needs.

The Kamdhenu brand is synonymous with products that uphold the highest standards of quality and ensure complete
customer satisfaction.