The small-cap company’s share price climbed nearly 17% in two trading sessions following an announcement that it is considering the issue of bonus shares.
Its shares settled at Rs. 12251.05 apiece on Friday and witnessed a massive increase on Monday, followed by nearly a 6% increase in its share price on Tuesday, to reach an intraday high of Rs. 14312.00 apiece. At 11:56 AM, its shares were trading at ₹ 14129.90 per share.
On 25th August 2023, Kama Holdings announced that its board of directors would be meeting on 1st September in order to consider the issuance of bonus shares. This decision is subject to approval by the shareholders of the company.
The company has also announced an interim dividend of 820% of its face value of Rs. 10 each amounting to Rs. 82 per share. Its record date is set as 31st August, 2023. The company has a dividend yield of 1.23%.
For Q1FY24, the company reported a total revenue of Rs. 3,362.63 crore which is a decrease of 10.7% against Rs. 3,768.35 crore in Q4FY23. Its net profit also decreased by 36.03% to Rs. 183.78 crore in this quarter. Previously, the net revenue of the company was Rs. 287.28 crore in Q4FY23.
However, the company has maintained a good P/E ratio of 6.91 against its industry average P/E ratio of 23.6. The stock remains undervalued and has an upside growth potential.
Kama Holdings Limited is an investment company that maintains long-term holdings in its subsidiary companies which include SRF Limited, Shri Educare Limited, SRF Polymers Investments Limited, and SRF Transnational Holdings Limited. Incorporated in 2000, the company also deals in the technical textile business, packaging film business, chemical business, and many more.
Written by Bhumika Khandelwal
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