First-Ever 1:10 Stock Split Approved: Technicals Hint Pain Before Gain; Will The Split Save It?

Padam Cotton Yarns was founded in 1994 and produces cotton yarn in addition to providing consulting services. Listed on the BSE, Padam Cotton Yarns Limited (PCYL) specializes in lifestyle offers, explores emerging trends in ready-made clothing, adds novel products to the fashion and lifestyle industries, and concentrates on maintaining a strong national presence in the home market. Following the Board's announcement of the first-ever stock split, Padam Cotton Yarns' shares finished Wednesday at a 5% lower circuit limit at Rs 72.84 per share, with a market capitalization of Rs 94.04 Cr.

Padam Cotton Yarns Stock Split

The Board of Directors of Padam Cotton Yarns Limited at their meeting held on Wednesday, 234 April, 2025, inter alia, has approved "Sub-division/ Split of equity shares of the Company, such that 1 (One) Equity Share of Rs. 10/- (Rupees Ten Only) each fully paid up, be Sub-divided / Splitinto 10 (Ten) Equity Shares having face value of Re. 01/- (Rupee One Only) each fully paid up, subject to necessary approvals. The Record Date for Sub-division / Split of existing Equity Shares shall be decided after obtaining requisite approval of the Shareholders of the Company and will be intimated in due course," said Padam Cotton Yarns in a stock exchange filing.

The purpose behind a 1:10 split is to enhance the liquidity of the company's equity shares and to encourage participation of small investors by making equity shares of the company more affordable to invest according to Padam Cotton Yarns.

Padam Cotton Yarns Dividend

"Board of Directors of the Company recommended a final dividend of Re. 1. /- (Rupee One only) per fully paid up equity share of Rs. 10/- each, for the financial year ended 31st March, 2025, subject to the approval of the shareholders of the Company at the ensuing Annual General Meeting ('AGM'). The Company has also declared its first interim Dividend on November 13, 2024 during the Financial year 2024-25 to shareholders holding shares as on Wednesday, November 27, 2024, the Record date," said Padam Cotton Yarns in a statement on 16th April.

Padam Cotton Yarns Q4 Results

On April 16, Padam Cotton Yarns Limited (PCYL) released its financial results for the fiscal year that ended on March 31, 2025, as well as the fourth quarter. In the quarter that ended in March 2025, Padam Cotton Yarns recorded a net profit of Rs 2.26 crore, compared to a net loss of Rs 0.37 crore in the quarter that ended in March 2024. The quarter that ended in March 2025 had sales of Rs 13.11 crore. Sales during the prior quarter, which concluded in March 2024, were not documented. The net profit for the entire year increased by 542.42% to Rs 10.60 crore in March 2025 compared to Rs 1.65 crore in March 2024. In the fiscal year that concluded in March 2025, sales totaled Rs 14.22 crore.

Padam Cotton Yarns Share Price Target

"Padam Cotton Yarns stock price is bearish but also oversold on the Daily charts with strong resistance at 81. A Daily close below support of 73 could lead to a target of 69.5 in the near term," commented A R Ramachandran, Independent Research Analyst.

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