Stock Split: Not IRFC, Or RVNL, But This Smallcap Railway Stock To Split Soon, 3,144% Returns In 5 Year

Amidst huge queues of companies on the path to split their shares to improve liquidity and make their share prices cheaper, a railway stock is looking to join the bandwagon. This will not be the first stock split by a listed railway company, but definitely one in many years. Want to guess? Its neither the largest railway stock IRFC or rising stars like large-caps IRCTC or RVNL. Its neither midcaps like Concor or RailTel. But a multibagger smallcap stock which is currently trading below Rs 500 on BSE.

Drum Roll! It is civil construction company, K&R Rail Engineering, first railway stock in many years, planning stock sub-division.

As per the latest regulatory filing by K&R Rail, its board of directors meeting is scheduled on Saturday, the 13th day of July to consider the following:

1. Audited financial results for the quarter and year ended March 31,2024.

2. Audit Report for quarter and year ended March 31,2024.

3. Split in the face value of equity shares of the Company.

4. Any other business with the permission of the Chair.

Since the New Year 2024 commenced, a host of stocks have undergone a sub-division aka stock splits either from penny stocks to large caps. 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.

There are a few very popular stocks split. They are 1:10, 1:5, 1:2, and 1:1. But it is up to the listed companies to decide their stock splits ratio.

What will be the stock split ratio by K&R Rail, will be keenly watched on July 13.

The stock is currently at Rs 492.15 apiece, with a market cap of Rs 1,041.93 crore. It has a price-to-equity ratio of 70.61x and return on equity of 10.78% as of July 8, 2024.