1:1 Bonus Share: 23rd August Record Date; Buy The Penny Stock Below Rs 5 To Get The Free Shares?

The leading manufacturer, retailer, and trader of textiles and knitted apparel is Garment Mantra Lifestyle Ltd. A B2B company named Garment Mantra produces and markets its own line of branded products. Garment Mantra provides a wide range of excellent apparel that satisfies global quality standards. The firm provides a large selection of items for women and children in the comfort-wear/night-wear sector. The penny stock had a market value of Rs 59.43 Cr when it closed on Friday at Rs 5.92 per share on the BSE.

Garment Mantra Lifestyle Bonus Shares

The Board of Directors fixed 23rd August, 2024 as the record date for the purpose of determining entitlement of the Members of the company for the issue of bonus shares, as per a regulatory filing.

"The Board has approved the issue Bonus shares out of free reserves and securities premium account to the existing equity shareholders in the ratio 1:1 (one equity share for every one equity share of nominal value of Rs.1/- each) subject to approval of shareholders and regulatory authorities. The Bonus Shares once allotted shall rank pari- passu in all respects and carry the same rights as the existing Equity Shares," Garment Mantra informed stock exchanges on 08.07.2024.

Garment Mantra Lifestyle Q1 Results

In the quarter that ended in June 2024, the firm reported standalone net sales of Rs. 25.46 crore, rising 36.62% from Rs. 18.64 crore in the same period in 2023. At Rs. 0.36 crore in Q1FY25, its standalone net profit improved 67.59% from Rs. 0.22 crore in Q1FY24. EBITDA reached Rs. 1.24 crore in the quarter under review up 33.33% from Rs. 0.93 crore in the year-ago quarter.

In the quarter that ended in June 2024, Garment Mantra Lifestyle's net profit increased 133.33% on a consolidated basis to Rs 0.70 crore, up from Rs 0.30 crore in the quarter that ended in June 2023. Consolidated sales rose 48.83% to Rs 40.69 crore in Q1FY25 as against Rs 27.34 crore during Q1FY24.

Garment Mantra Lifestyle Share Price Target

"Though the quarterly results of Garment Mantra Lifestyle stock have generated buzz among some market participants, the stock's current price movement appears weak. Its market momentum does not seem ideal for traders and investors with a low-risk appetite. The stock is currently trading at Rs. 5.90 and is expected to fall to Rs. 4-4.50. Additionally, being a small-cap stock, its low liquidity could create problems for those interested. Regardless, those who wish to tap its earnings potential can consider the buying range of Rs. 4-4.50 for a target of Rs. 6-8. They can hold this stock for 2-6 months, given they follow a stop loss of Rs. 3.30 closely," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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