Bonus Issue of 1:1: 9th September Record Date; SL At Rs. 1.70, TP Rs. 5-12, Entry Price?

With a market valuation of Rs 53.65 Cr, Franklin Industries is a micro-cap company in the commercial services sector. One of the top suppliers of contract farming services is Franklin Industries Ltd. Agribusinesses, food processors, exporters, retailers, and other companies looking for reliable and sustainable sources of agricultural produce make up the company's target market. Franklin Industries' stock ended Tuesday's trading session on the BSE at Rs 3.71 per share.

Franklin Industries Bonus Shares

The company's Board of Directors have fixed 09th September, 2024 as the record date for the purpose of 1:1 i.e. 1 (One) bonus equity shares of the face value of Re. 1/- each fully paid up for every 1 (One) existing equity shares of face value of Re. 1/- each fully paid up.

Franklin Industries Bonus Shares Allotment

"The allotment of shares in bonus issue shall be made only in dematerialized form and thus, in case of members who hold equity shares in dematerialized form, the bonus equity shares shall be credited to the respective beneficiary accounts of the Members with their respective Depository Participant(s) and in the case of Members who hold equity shares in physical form, the bonus equity shares shall be transferred to the Suspense Account opened in this regard, within such time as prescribed by law and the relevant authorities, subject to guidelines issued by SEBI in this regard," said Franklin Industries in a statement.

Franklin Industries Share Price Target

"Franklin Industries Ltd. is a micro-cap company that is trading at Rs. 3.71 with a 1-year performance of +115.43%. The company's financial metrics include a P/E ratio of 3.52, which is relatively low compared to the sector average of 15.66 and is currently trading at Rs. 3.71, with a P/B ratio of 3.79. The ROE of the stock is strong at 72.03%, indicating profit. However, the stock's 52-week range marks a low of Rs. 1.79 and a high of Rs. 8.26, indicating significant volatility. Despite the market situation, the company's revenue jumped to Rs. 69.94 Cr in FY 2024 from Rs. 50.58 Cr in FY 2023. These factors indicate that the stock may be undervalued. However, sharp increases in stock prices and higher ROEs carry volatility risks. Franklin Industries is highly liquid and riskier, making it more suitable for risk-tolerant investors. I would recommend the entry price range at Rs. 2.20-2.30 for a target price of Rs. 5-12 and a stop loss of Rs. 1.70. Additionally, I recommended holding it for 3 to 10 months for potential benefits. While Franklin Industries has shown impressive financial performance, I suggest caution due to its underperforming and volatile cash flows. Those interested in this stock should have a clear exit strategy before investing," recommended V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

"Franklin Industries stock price is bearish on the Daily charts with strong resistance at 3.85. A Daily close below support of 3.6 could lead to a target of 2.95 in the near term," stated 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.