Record Date Awaited: 3:2 Bonus Share-Fueled Rally Sends Multibagger Stock To Upper Circuit; Time To Enter?

Headquartered in Virudhunagar, South India, VTM Limited is an Indian textile manufacturing firm that specializes in producing gray weaving materials as well as grey and processed fabrics. VTM Limited is a part of the Thiagarajar Group, a renowned company in the Indian textile sector. The company's production facility is situated in Tamil Nadu's Virudhunagar. The firm produces a broad range of textiles, such as twills, satins, structured fabrics, dobby weaves, plain weaves, specialized weaves, and jacquard patterns. With a market value of Rs 833.31Cr, the shares of VTM Ltd (NDA) were trading at a 2% upper circuit limit on Wednesday at Rs 207.15 a share. This was following the Board's announcement on Wednesday that 3:2 bonus shares will be issued, with a record date to be determined shortly.

VTM Bonus Shares

"The Board has approved the proposal for issuance of bonus equity shares out of free reserves available for distribution, in the ratio of 1.5:1, i.e., 1.5 (One and a Half) fully paid-up equity shares of face value of Rs 1/- each for every 1 (One) fully paid-up equity share held by the shareholders, as on the Record Date, subject to the approval of shareholders by way of Postal Ballot. The Ratio can also be rephrased as 3:2, i.e.,3 (Three) fully paid-up equity shares of face value of Rs 1/- each for every 2 (One) fully paid-up equity share held by the shareholders, as on the Record Date, subject to the approval of shareholders by way of Postal Ballot. The record Date intimation will be given separately once after the approval sought from the Shareholders for the items specified in the Postal Ballot Notice," said VTM in a stock exchange filing on Wednesday.

VTM Financials

The company's net sales for the quarter ending in December 2024 were Rs 103.52 crore, increasing 102.87% from Rs 51.03 crore for the quarter ending in December 2023, according to Moneycontrol. Its net profit increased by 294.69% from Rs. 4.61 crore in the December 2023 quarter to Rs. 18.20 crore in the December 2024 quarter. EBITDA increased 228.09% from Rs. 8.33 crore in Q3FY24 to Rs. 27.33 crore in Q3FY25. The company's Q4FY25 results will be released soon.

VTM Share Price Target

"VTM Ltd stock price is bullish on the Daily charts with strong support at 191. A Daily close above resistance of 216 could lead to a target of 270 in the near term," commented A R Ramachandran, Independent Research Analyst.

Disclaimer

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