Friday, June 14, 2024

Multibagger Micro cap Alstone Textiles Ltd. announces Biggest Bonus in BSE’s history

Prior to the Bonus Shares announcement Alstone Textiles had been continuously making new 52 week highs and lifetime high and had closed at Rs.300 on 18th of November.

The counter has been in an euphoria among investors on the back of the announcement of the split of its equity shares and issue of the bonus shares. BSE listed, Alstone Textiles has announced a huge 1:9 Bonus for its shareholders, followed by a 1:10 Split. This means an eligible investor would get 10 equity shares with a face value of Re 1 each of the company for every one share with a face value of Rs 10 held by them,  on top will be 9 Bonus shares of face value Rs. 1 on each share after the split. The record date has been set to 14 December, 2022.

Investors holding shares of Alstone Textiles till the record date will be eligible for the
split and bonus shares.

The suspected reason behind the bonus seems to be the outstanding quarterly results of the company, clocking Rs. 8cr in the recent quarter. The company’s next quarter is also expected to be as good as its current quarter, due to the ongoing business of the company in the foregin and domestic textiles market.

Alstone Textiles is indulged in procurement, processing and Distribution of pre-processed textiles. The company aims for clients in the fast moving fashion industry who deal in bulk. Alstone Textiles also exports pre-processed textile to European and American countries. In the last several trading days, the company’s stock has consistently reached a 5-percent upper circuit daily. As a result, this company gave a multibagger return of 200 plus percent to its investors in just 1 month. On August 24, 2022, Alstone Textiles was first listed on the Bombay stock exchange. The price of its shares was barely Rs 15.75 at the time. Since then, its shares have provided investors with returns of over tenfold in the past ten weeks.

India is the oldest Textile producer and exporter in the world, which gives all the Indian Textile companies a competitive edge over others. The government policies are also favourable for all types of textile business in India which makes this sector highly profitable. 

has the lowest PE ratio of 33.
Company has surplus reserve of ₹120 crore.
Company expected to give ₹25crores profit in next quarter.

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