Monster Profit Stock Turns Ex-Split, InvestingPro Sees Upto 49% Downside
By Malvika Gurung
Investing.com -- The pharmaceutical manufacturing and marketing stock Vivanza Biosciences (BO: VIVN ) is under focus as its shares turn ex-split on Friday.
The micro-cap company’s Board of Directors had approved the sub-division or split of existing equity shares from one share of the face value of Rs 10 each to ten equity shares of the nominal value of Re 1 each in its share capital.
The record date for determining shareholders eligible for the proposed stock split was fixed as Friday, March 24.
In the December quarter, Vivanza Bioscience posted a net profit of Rs 0.46 crore, skyrocketing 1,063.24% on a YoY basis, while its total income rallied by a whopping 280.67% YoY in Q3 to Rs 5.87 crore.
InvestingPro models see an over 28% downside for the micro-cap stock, at an average fair price of Rs 141.7/share.
InvestingPro has set a most bearish target of Rs 101/share on Vivanza Bioscience, which is at a 49% downside from the current share price.
Splitting a stock typically increases the stock’s liquidity in the capital market and makes it more affordable for small investors. Doing so increases the number of shares in the market while keeping the stock’s market capitalization unchanged.
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