Triple Bonanza! 1:10 Stock Split; Rs 50/Share Dividend & Stellar Results: Stock Hit 20 Per Cent Upper Circuit; Trades at Low PE and High ROE & ROCE
The stock is up by 59.3 per cent from its 52-week low of Rs 1,765 per share.
On Wednesday, one of the Top Gainers on the BSE, shares of KSE Ltd hit a 20 per cent upper circuit to Rs 2,811.20 per share from its previous closing of Rs 2,342.70 per share. The shares of the company saw a spurt in volume by more than 23 times. The stock’s 52-week high is Rs 2,990 per share and its 52-week low is Rs 1,765 per share.
Incorporated in 1963, KSE Ltd is a diversified company with operations spanning ready-mixed cattle feed manufacturing, oil extraction from oil cakes using the solvent extraction method, and processing of milk and milk products. Certified by the National Productivity Council for its compound cattle feed production and solvent extraction, KSE also has a significant presence in milk procurement and processing across various districts in Kerala. The company boasts an extensive distribution network of over 700 dealers and offers customer support services, including on-call veterinary doctors.
According to Quarterly Results, the company reported net sales of Rs 392 crore in Q4FY25 and net profit increased by 84 per cent to Rs 35 crore in Q4FY25 compared to Q4FY24. In its annual results, the company reported net sales of Rs 1,650 crore in FY25 and net profit increased by 406 per cent to Rs 91 crore in FY25 compared to FY24.
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The company has proposed a final dividend of Rs 50 per equity share with a face value of Rs 10 for the financial year 2024-25, pending shareholder approval at the upcoming Annual General Meeting (AGM). Additionally, a stock split in the ratio of 1:10 has been proposed, changing the face value of equity shares from Rs 10 to Re 1 per share. This subdivision aims to improve the liquidity of the company's equity shares, enhance affordability for retail investors, and widen shareholder participation. The pre-split authorised share capital stands at Rs 10,00,00,000, comprising 99,40,000 equity shares of Rs 10 each and 6,000 redeemable cumulative preference shares of Rs 100 each. The record date for the split will be announced in due course, subject to shareholder approval.
The company has a market cap of over Rs 700 crore and has delivered good profit growth of 37 per cent CAGR over the last 5 years with its current debt is Rs 24.1 crore. The shares of the company have a PE of 9x, an ROE of 34 per cent and an ROCE of 43 per cent. The stock is up by 59.3 per cent from its 52-week low of Rs 1,765 per share.
Disclaimer: The article is for informational purposes only and not investment advice.