BackSmall cap stock to mull bonus shares this week, FIIs and mutual funds raises stake in Q3
Sirca Paints India Ltd is a small-cap company with a market capitalization of ₹1,761 Cr that operates in the consumer durables sector.
PremiumSirca Paints India Ltd is a small-cap company with a market capitalization of ₹1,761 Cr that operates in the consumer durables sector. Sirca Paints is India's leading manufacturer of wood coatings and wall paint. The company has informed stock exchanges that the Board of Directors will meet this week to discuss issuing bonus shares for eligible shareholders.
“With reference to the captioned subject matter, we are pleased to inform you that the Meeting of the Board of Directors of the Company will be held on Wednesday, 29th March, 2023, inter alia, to consider the following: 1. To consider increase in the Authorized Share capital of the company and consequent alteration of Clause V of the Memorandum of Association of the Company, Subject to the approval of the members; 2. Proposal for issue of Bonus Shares, subject to the approval by the members and any other requisite approvals; 3. Any other business with the permission of the chairman. Further, We wish to inform you that pursuant to Insider Trading Code of the Company, trading window for dealing in equity shares of SIRCA PAINTS INDIA LIMITED shall remain closed for all the designated persons and their Immediate Relatives of the company with effect from March 22, 2023 till 31st March, 2023 for Financial year 2022-2023," said Sirca Paints India in a stock exchange filing.
During the quarter ended December 2022, the company recorded a net income of ₹66.18 Cr compared to ₹54.56 Cr reported during the quarter ended December 2021. The company's net expenses stood at ₹52.01 Cr during Q3FY23 compared to ₹42.34 Cr during Q3FY22 and its EBIT reached ₹14.17 Cr during Q3FY23 as against ₹12.22 Cr reported during the same quarter of FY22. Sirca Paints India said its net profit stood at ₹10.53 Cr during Q3FY23 compared to ₹9.16 Cr during the year-ago quarter and its EPS reached ₹3.84 during Q3FY23 as against ₹3.34 recorded during Q3FY22.
On Friday, the shares of Sirca Paints India closed on the NSE at ₹644.80 apiece level, down by 1.11% from the previous close of ₹652.05. The stock recorded a total volume average of 61,834 shares compared to the 20-Day average volume of 32,193 shares. The stock has risen 40.46% in 1 year and has dropped 4.79% year to date in 2023. The stock touched a 52-week-high of ₹800.90 on (14-Dec-2022) and a 52-week-low of ₹402.35 on (26-May-2022), indicating that at the current market price, the stock is trading 19.49% below the 1 year high and 60.25% above the 1 year low.
Commenting on the technical outlook of Sirca Paints India, A R Ramachandran, Co-founder & Trainer-Tips2trades said “Sirca Paints is fundamentally a good stock with decent return ratios despite a slowdown in profit growth over the past 3 years. However, investors are advised to wait for lower levels of close to 550-557 to initiate fresh buy positions. Strong resistance will now be at 686."
During Q3FY23, the company reported a promoter shareholding of 67.55%, FIIs stake of 5.59%, DIIs stake of 4.41% and a public stake of 22.45%. As per the data of Trendlyne, promoters' stake of Sirca Paints India remain unchanged at 67.55% in December 2022 quarter, FII/FPI raised their stake from 1.97% in September 2022 quarter to 5.59% in December 2022 quarter, number of FII/FPI investors gone up from 8 in Q2FY23 to 13 in Q3FY23, mutual funds raised their stake from 3.81% in Q2FY23 to 4.34% in Q3FY23, and institutional investors have trimmed their holdings from 24.59% in Q2FY23 to 10.00% in Q3FY23.
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