Multibagger stock approves 1:2 bonus shares, scrip plunges by 5%
Small-cap firm Precision Wires India Ltd operates in the industrial sector and has a market worth of ₹1,139.60 Cr.
Small-cap firm Precision Wires India Ltd operates in the industrial sector and has a market worth of ₹1,139.60 Cr. The company is one of India's most prosperous ones in the wire sector. The firm is the largest manufacturer of winding wires in South Asia, with an installed capacity of over 40000 MT/year. The Board of Directors authorised bonus shares in a 1:2 ratio and the corporation has released its Q2 results.
The company has said in a stock exchange filing that “We hereby inform you, outcome of the Meeting of the Board of Directors held today i.e. Thursday, 10th November, 2022 by vide conference at Mumbai. The Board unanimously considered and approved 1) Bonus issue of 1 (one) equity share for every 2 (Two) equity shares held by the Shareholders of the Company as on the record date. The bonus issue of equity shares will be subject to approval by the Shareholders through Postal Ballot, and any other applicable statutory and regulatory approvals. The Bonus shares once allotted shall rank pari - passu in all respects and carry the same rights as the existing Equity Shares and shall be entitled to participate in full in any dividend and other corporate action, recommended and declared after the new equity shares are allotted. 2) Increased in Authroised Capital from Rs.15 Crore to 25 Crore."
The total number of securities proposed to be issued is 5,78,18,115 equity shares and It will be from the share premium account. The pre-bonus share capital is 11,56,36,230 and the post-bonus share capital will be 17,34,54,345. The estimated date by which such bonus shares would be credited/dispatched is within 2 months from the date of approval in Board Meeting i.e. by 9th January 2023.
In Q2FY23, the company reported net sales of ₹721.31 Cr compared to ₹821.44 Cr in Q1FY23 and ₹706.64 Cr in Q2FY22. The company reported a total expense of ₹706.38 Cr in the quarter ended September 2022 compared to ₹803.57 Cr in the quarter ended June 2022 and ₹688.11 Cr in the quarter ended September 2021. The company reported a profit before tax (PBT) of ₹19.60 Cr in Q2FY23 compared to ₹22.60 Cr in Q1FY23 and ₹20.73 Cr in Q2FY22, representing a 13.27% QoQ fall and a YoY fall of 5.45%. The company posted a net profit of ₹14.66 Cr in Q2FY23 compared to ₹16.82 Cr posted in Q1FY23 and ₹14.97 Cr posted in Q2FY22, representing a YoY fall of 2.07% and a QoQ fall of 12.84%. The EPS stood at ₹1.27 per share in Q2FY23 compared to ₹1.46 in Q1FY23 and ₹1.29 in Q2FY22.
Precision Wires India Ltd.'s shares dropped by 5.28% from yesterday's close of Rs. 104.20 and closed today at Rs. 98.70 a share. Compared to the 20-Day average volume of 314,680 shares, the stock traded today for a total volume of 787,122 shares. The stock has produced a multibagger return of 142.51% over the past five years, and a multibagger return of 168.4% during the past three years. The stock has climbed 56.05% over the past year, and on a year-to-date basis, it has appreciated 37.75% in 2022.
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