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Microcap stock soars 20% on 1:5 stock split news; up 60% in 4 days
Source: Business Standard
Illustration by Binay Sinha
Premier Polyfilm shares were locked in the upper circuit for a second straight day today, up 20 per cent at Rs 356.90 on the BSE on Tuesday. Premier Polyfilm shares hit a record high on the BSE after the reported its September quarter (Q2FY25) results.
The company’s board also fixed November 5 as the record date for its 1:5 stock split, and approved proposed expansion plans.
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In the past two days, the market price of Premier Polyfilm has surged 44 per cent. In the last four days, it has zoomed 60 per cent from a level of Rs 222.70 seen on Wednesday, October 9. The company has a market capitalisation of Rs 745 crore.
At 01:46 PM, the micro-cap stock was trading 19.5 per cent higher at Rs 355.35. Average trading volume on the counter jumped nearly 10-fold today with a combined 5.69 million equity shares changing hands on the NSE and the BSE. In comparison, the BSE Sensex was down 0.29 per cent at 81,737.
In Q2FY25, Premier Polyfilm reported a 60.7 per cent year-on-year (Y-o-Y) jump in profit after tax at Rs 7.86 crore. Revenue grew 3.5 per cent Y-o-Y at Rs 78.73 crore during the quarter.
Premier Polyfilm stock split record date news
The company has fixed November 5, 2024, as the record date for the purpose of ascertaining the eligibility of the shareholders entitled for the sub-division of 1 equity share of face value of Rs 5 each to 1 equity shares of face value of Rs 1 each.
Premier Polyfilm said the company’s strong performance and faith of the investors has led to significant increase in the market price of its equity shares. In order to provide enhanced liquidity in the capital market through widening shareholder base and to make it more affordable for small investors, it has proposed to sub-divide face value of equity shares of the company, it added. The stock price of the company has doubled from its June month low of Rs 179.70 on the BSE.
Premier Polyfilm expansion plans
The company further said its board has approved the purchase of industrial land for future expansion activities in the state of Tamil Nadu.
The company is engaged in the manufacture of vinyl flooring, sheeting and artificial leather cloth. The products of the company are used for a variety of industrial and consumer applications. Overall growth rate of the market size is more than 10 per cent annually.
Encouraged by the results , the company has established another factory at its industrial plot at Sikandrabad Industrial Area, Sikandrabad, District Bulandshahar (UP) to manufacture Soft Touch Cushion type of Artificial PVC Leather cloth, PVC Sheetings and Films, Knitted Fabric etc, Premier Polyfilm said in its FY24 annual report.
After commencement of commercial production at Unit II of the company, demand for products of the company has gone up and is likely to go up further during the current financial year and hence the profitability of the company is expected to improve, it added.
First Published: Oct 15 2024 | 2:08 PM IST
