1:10 Split: Trading Below Rs 200, Penny Stock In Steel Segment, Splitting In March, Fixes Record Date
It is a multi-bagger, with business engaged in the iron and steel segment.
The company will be undergoing its first-ever stock split which is in the ratio of 1:10. Simply put, Dhatre Udyog’s face value of Rs 10 will be split into ten smaller shares with a face value of Rs 1 each.
Dhatre has not announced any bonus or dividend as of now. That makes stock splits its first corporate affair.
On BSE, Dhatre’s share price ended at Rs 185.90 apiece, up by 0.81% with a market cap of Rs 202.55 crore on March 15. The penny stock is undervalued as it trades lower by 41.4% from its 52-week high of Rs 317.25 apiece but is still a multi-bagger with the current upside of 145.7% from its 52-week low of Rs 75.65 apiece.
In a year, the stock zoomed by nearly 120% on BSE.
As per BSE data, the company’s return on equity (RoE) is in the normal range of 16.10% on the current price level, while its price-to-equity ratio is at 19.35. As of now, the company has completed approximately 8.705 projects, as per the website.
Dhatre Udyog Limited Stock Splits:
This iron and steel products maker has announced a stock split of 1:10 ratio. Last week, it fixed the record date for the split.
In its regulatory filing, Dhatre fixed Friday, March 29, 2024, as the record date for determining the eligibility of Shareholders for the purpose of subdivision /split of each equity share having face value of Rs. 10/- (Rupees Ten only) each, fully paid-up into ten (10) equity shares having face value of Rs. 1/- (Rupee One only) each fully paid-up.
Due to a stock split, the demand for a stock rises, the company’s liquidity improves and the respective stock becomes affordable for investors.
About Dhatre Udyog:
Dhatre Udyog Limited (DUL) (Formerly Known as Narayani Steels Limited), a Secondary Steel Producer, was incorporated in 1996 as a Private Limited Company with operations in Vizianagram, Andhra Pradesh, India.
In March 2022, Rishikunj Vincom Private Limited acquired the management control of DUL through the Corporate Insolvency Resolution Process initiated for addressing the resolution of non-performing assets of the Indian banking system.
As per the website, DUL has grown tremendously over the years and is now a highly trusted name in the industry. The growing reputation is thanks to the quality of its diverse products including Rebars, MS Grade Angels, Flats, Squares, Rounds, different sized wire rod coils. The Company registered its business turnaround in less than a year since its acquisition, becoming a profitable business in FY 2022-2023.
Disclaimer: The write-up highlights about the latest development in the bonus issue, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.
