Bonus Share News l The stock of Dhankalakshmi Roto Spinners, a company in the textile segment, may see action next week. The company has announced a bonus issue, with the record date set for 26 March 2025.
This means that if you hold shares of the company by 26 March 2025, you will benefit from the bonus issue. Due to the announcement of the bonus issue and plans for raising funds, the micro-cap stock of Dhankalakshmi Roto Spinners Limited may remain in focus.
Shareholders have approved the increase of the company’s authorised share capital from 50 million rupees to 150 million rupees through an amendment to the association’s memorandum. This decision was made during an extraordinary general meeting on 14 March 2025.
3,900,300 bonus equity shares at a 1:1 ratio
The company has also informed that approval has been granted for the issuance of 3,900,300 bonus equity shares at a 1:1 ratio. The company has set the record date for the bonus issue as 26 March 2025. According to the company, the bonus shares will be available to shareholders by 27 March. This move is expected to increase liquidity and attract more investors.
Multibagger for stock investors
Dhanlaxmi Roto Spinners has proven to be a multibagger for stock investors. Its 10-year return is 40% CAGR, 5-year return is 79% CAGR, and 3-year return is 36% CAGR. In the last year, the stock has provided a 19% return despite the market downturn. The 1-year high for the stock is ₹289 while the 1-year low is ₹147. In terms of return on equity, it has been 21% over 10 years, 23% over 5 years, 26% over 3 years, and 28% last year.
Company’s financial
The company’s compounded sales growth has been 17% over 10 years, 15% over 5 years, and 39% over 3 years, while the compounded profit growth has been 38% over 10 years, 41% over 5 years, and 44% over 3 years.
In the third quarter of the financial year 2025, Dhanlaxmi Roto Spinners Limited recorded a consolidated revenue of ₹68.88 crore, which is 40 per cent higher than ₹49.54 crore in the third quarter of the financial year 2024. However, on an annual basis, profit fell by 32 per cent from ₹3.67 crore in the third quarter to ₹2.49 crore. The company’s RoCE is 23.4 per cent and return on equity (RoE) is 18.69 per cent. The price-to-earnings (P/E) ratio is 9.49.
