- Shares surged by 5% to a new 52-week high of Rs 106.90.
- Board approves bonus equity share issue at a 15:100 ratio.
- Company boasts a robust 3-year CAGR of 90%.
- H2FY23 and FY23 results show impressive growth in net sales and profit.
- Stock delivers a staggering 570% return over 2 years.
In-Depth Analysis:
1. Stock Performance:
On Friday, Yug Decor Ltd’s shares witnessed a significant uptick, soaring 5% to reach Rs 106.90 per share, up from its last close at Rs 102. This surge also marked a new 52-week high for the stock.
2. Bonus Equity Shares Allotment:
In a recent announcement, Yug Decor confirmed that its Board of Directors, in a meeting held on October 7, 2023, greenlit the allotment of 9,38,197 Equity Shares at Rs 10 each as a bonus issue. This allotment is set for members registered as of October 5, 2023.
The distribution ratio stands at 15 new shares for every 100 existing shares held by members. These new bonus shares will hold equal rights and privileges as the current equity shares. The company assures that the necessary processes for crediting these Bonus Equity Shares to shareholders’ demat accounts will be executed promptly.
3. Company Overview:
Yug Decor Ltd specializes in the manufacturing and trading of a diverse range of Specialty Chemicals. Their product line includes water-based adhesives and solvent-based adhesives. With a market capitalization of Rs 76.89 crore, the company has demonstrated a remarkable 3-year CAGR of 90%.
4. Financial Performance:
The company’s financials have been nothing short of impressive. For H2FY23, net sales rose by 6% to Rs 15.65 crore, and net profit skyrocketed by 137% to Rs 1.09 crore, compared to H2FY22. The annual figures for FY23 also paint a rosy picture, with net sales growing by 28% to Rs 31.19 crore and net profit surging by an astounding 1040% to Rs 1.14 crore, in comparison to FY22.
5. Investment Perspective:
The company’s stock performance has been stellar, offering multibagger returns of 115% in a mere 6 months and a jaw-dropping 570% over the past 2 years. Given these figures, Yug Decor Ltd is undoubtedly a micro-cap stock that investors should monitor closely.
Disclaimer: This article is intended solely for informational purposes and should not be construed as investment advice. Always conduct your own research or consult with a financial advisor before making investment decisions.
