1:2 Stock Split of Fertilizer Stock: Record Date To Be Announced; Hot Pick To Buy?

One of India's top producers of phosphoric fertiliser, or Single Super Phosphate (SSP) fertiliser, is Rama Phosphates Limited (RPL). The equities of Rama Phosphates Limited, a public limited company, are traded on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The company produces phosphoric fertilisers, including boronated single super phosphate (SSP) in powder and granule form, mixed fertilisers, NPK of different grades, fortified fertilisers, and micronutrients, such as magnesium sulphate. substances like oleum and sulphuric acid. Following the Board of Directors' announcement of a 1:2 stock split, Rama Phosphates' shares closed Friday's trading session on the NSE 2.97% higher at Rs 205.90 per share, with a market capitalisation of Rs 364.30Cr.

Rama Phosphates Stock Split

"Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Members of the Company through Postal Ballot on Wednesday, January 1, 2025, being the last date of the remote e-voting, have approved the Sub-division/ split of the existing 1 (One) Equity Share of the Company, having face value of Rs.10/- (Rupees Ten only) each, into 2 (Two) Equity Share having face value of Rs.5/- (Rupees Five only) each," said the company in a stock exchange filing on 3rd January 2025.

"The Company being listed and traded on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE), sub-division/ split of shares is intended to enhance liquidity of the Company's equity shares in the stock market and make the shares more affordable for small investors. By increasing the number of shares available at a lower face value, the Company aims to broaden its shareholder base, participation, and improve marketability," Rama Phosphates informed stock exchanges.

"The Record date for sub-division/ Split of existing Equity shares shall be decided in consultation with Stock Exchanges after taking aforesaid approval of the Shareholders of the Company," Rama Phosphates further confirmed.

Rama Phosphates Financials

The company's net profit for the quarter ending September 30, 2024, was Rs 308.40 lakhs, whereas the net profit for the quarter ending September 30, 2023, was Rs 66.82 lakhs. Additionally, for the half-year ending September 30, 2024, the company reported a net profit of Rs 978.03 lakhs, compared to Rs 100.22 lakhs for the same period in 2023.

Rama Phosphates Share Price Target

"Rama Phosphates stock price is slightly bullish on the Daily charts with strong support at 195. A Daily close above resistance of 212 could lead to a target of 234 in the near term," commented A R Ramachandran, Independent Research Analyst.

Disclaimer

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