Small Cap Stock To Propose 1st Ever Bonus Shares, Board Meeting On 16th of April; Buy Now?

As a member of the Thiagarajar Group, VTM Limited (previously Virudhunagar Textile Mills Ltd) is an Indian textile firm that specializes in gray weaving and offers a variety of textiles for both local and international markets, with an emphasis on specialized weaves and structures. With a long history in the Indian textile business, VTM Limited was founded in 1946 and offers a wide range of textiles, including woven fabrics and drills, twills, sateens, piques, jacquards, and dobbies. The business has a manufacturing facility in South India's Virudhunagar. On Tuesday, the shares of VTM Ltd ended at a 2% lower circuit limit at Rs 195.35 per share with a market cap of Rs 785.85 Cr after the company declared the Board will meet on 16th April to consider first ever bonus shares since its founding.

VTM Bonus Shares

"A Meeting of the Board of Directors of the Company will be held through Video Conference on Wednesday the 16th of April 2025 at 04.30 PM. We request you to make it convenient to attend the meeting. 1. To record Circular Resolutions. 2. To peruse and sign the register maintained under Section 189 of the Companies Act 2013. 3. To consider and approve the amendments of Articles of Association for Capitalization of reserves 4. To consider and approve the proposal for the issue of bonus shares. 5. To approve an increase in the authorized share capital, if required. 6. Any other subject that may be brought up before the meeting," said VTM in a stock exchange filing.

VTM Financials

The firm recorded net sales of Rs 103.52 crore for the quarter ending in December 2024, rising 102.87% from Rs 51.03 crore for the quarter ending in December 2023, according to Moneycontrol. Its net profit jumped 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 by 228.09% from Rs. 8.33 crore in Q3FY24 to Rs. 27.33 crore in Q3FY25.

VTM Share Price Target

"VTM Ltd stock price is bearish on the Daily charts with strong resistance at 203. A Daily close below support of 184 could lead to a target of 165 in the near term," commented A R Ramachandran, Independent Research Analyst.

Disclaimer

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