7:1 Bonus Share & 2.5 Per Cent Dividend Announced: Mumbai-Based Multibagger Textile Stock; Trades at Low PE with High ROE & High ROCE
The shares have a low PE of 16x whereas the industry PE is 25x with a high ROE of 42 per cent and a high ROCE of 51 per cent.
Shine Fashions (India) Limited has announced two significant proposals for its shareholders: a bonus share issuance and a dividend recommendation, both subject to approval at the upcoming Annual General Meeting. The company proposes to issue bonus shares in a 7:1 ratio, meaning seven new equity shares of Rs. 5 each for every one existing share of Rs. 5. Concurrently, the Board has recommended a dividend of 1250 paisa (Rs. 12.50) per equity share of Rs. 5 each for the financial year 2024-25. Friday, July 4, 2025, has been fixed as the record date.
Shine Fashions (India) Ltd, established in 2019, is a textile company that imports and trades various fabrics and textile raw materials. Their product line includes non-interlinking fabrics, woven fusible interlinings, and microdot fusible interlinings, encompassing items like cotton interlining fabric and different polyester lining fabrics.
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The company has a market cap of Rs 114 crore and has delivered good profit growth of 83 per cent CAGR over the last 5 years with working capital requirements having reduced from 95.3 days to 71.4 days. The stock has given multibagger returns of 124 per cent from its 52-week low of Rs 168.50 per share and a whopping 700 per cent in 5 years. The shares have a low PE of 16x whereas the industry PE is 25x with a high ROE of 42 per cent and a high ROCE of 51 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.