2025 Bonus Shares: 2:1 Ratio, January 17 Record Date; Wealth Creation Pick?

One of the largest producers of apparel for kids worldwide, Kitex Garments Ltd. is a member of the well-known Anna-Kitex group of enterprises, which was established by the late, renowned Shri M. C. Jacob. The company is now establishing operations in the United States of America. Under the Kitex brand, the firm produces and sells a variety of clothing items, including traditional attire (dhotis and lungis), undergarments, and children's clothing. Following the announcement of the record date for 2:1 bonus shares, Kitex Garments' stock closed Thursday's trading session 1.10% down at Rs 680, with a market capitalisation of Rs 4.52KCr.

Kitex Garments Bonus Shares

"This is further to our letters dated November 22, 2024 and December 30, 2024 wherein on receipt of approval of shareholders through Postal Ballot, we wish to inform you that the Company has received in-principle approval under Regulation 28(1) of SEBI (LODR) Regulations, 2015, from BSE Limited and National Stock Exchange of India Limited vide their letters dated December 31, 2024, for issue and proposed allotment of 13,30,00,000 Equity Shares of Rs 1/- each as bonus shares in the ratio of 2 (Two) new equity shares of every 1 (One) existing equity share held in the Company. Further, the Company has fixed Friday, January 17, 2025, as the "Record Date" to determine the eligibility of shareholders for issuance of the said Bonus Shares. The deemed date of allotment shall be Monday, January 20, 2025, for the purpose of allotment of said Bonus Shares of the Company. Further, these Bonus Shares will be made available for trading on the next working date of allotment, i.e, Tuesday, January 21, 2025, in accordance with SEBI circular dated September 16, 2024," said Kitex Garments in a stock exchange filing on Wednesday.

Kitex Garments Financials

The company's September 2024 quarter net sales of Rs 215.88 crore represented a 61.16% increase over the September 2023 quarter's sales of Rs 133.96 crore. Its net profit increased 181.37% from Rs. 13.27 crore in Q2FY24 to Rs. 37.34 crore in Q2FY25. In the September 2024 quarter, EBITDA was Rs. 57.95 crore, rising 126.81% from the September 2023 quarter's Rs. 25.55 crore.

Kitex Garments Share Price Target

"Kitex Garments stock price is bullish on the Daily charts with strong support at 630. A Daily close above resistance of 739 could lead to a target of 886 in the near term," commented A R Ramachandran, Independent Research Analyst.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.