1:3 Bonus Shares: September 16 Record Date; What The Daily Charts Suggest of This Penny Stock?

On July 16, 2013, Axita Cotton was established in Ahmedabad. The company manufactures cotton seeds and bales. Situated near Saurashtra and other fertile cotton-growing regions of Gujarat, the company's manufacturing plant is located at Kadi, in the Mehsana District of the state. The regions of Gujarat, Rajasthan, Maharashtra, and Madhya Pradesh are where the majority of the products are sold by the company. It also deals in the trading of cotton seeds, cotton bales, and kapas.

Axita Cotton Bonus Shares

"Pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 it is hereby informed that the Company has set Monday, September 16, 2024, as the Record Date to determine eligible shareholders for issuance and allotment of Bonus Equity Shares of the Company in the proportion of 1:3 [i.e. 1 (One) new fully paid up equity shares of Rs. 1/- each for every 3 (Three) fully paid up existing 'equity share of Rs. 1/- each held], subject to the approval of Members through Postal Ballot," said Axita Cotton in stock exchange filing.

Axita Cotton Financials

The company had net sales of Rs. 154.93 crore for the quarter that ended in June 2024, a 32.01% drop from Rs. 227.87 crore for the same period in 2023. Its net profit for the first quarter of FY25 was Rs. 3.54 crore, a 38.33% decrease from Rs. 5.75 crore in Q1FY24. From Rs. 8.03 crore in June 2023 to Rs. 5.74 crore in June 2024, EBITDA has dropped by 28.52%. The EPS for Axita Cotton plummeted from Rs. 0.29 in June 2023 to Rs. 0.13 in June 2024.

Axita Cotton Share Price Target

A R Ramachandran, Independent Research Analyst, said "Axita Cotton stock price is sideways to bullish on the Daily charts with strong support at 23.5. A Daily close above resistance of 25.1 could lead to a target of 29 in the near term."

Disclaimer

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