Multibagger stock hits 5% upper circuit today after it announces a 1:10 stock split 

Artemis Electricals and Projects Ltd started its trading session today at Rs 106.90 and since then the same has been in a 5 percent upper circuit. Having a purview of a month, the stock has proven to deliver to its stakeholders a return of around 41.3 percent ranging from Rs 75.65 to the current price levels.

Going further ahead with a horizon of 1 year, the stock has provided Multibagger returns of 105 percent to the stakeholders ranging from Rs 52.15 to current levels. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.05 lakhs today!

Recently this month, Artemis Electricals and Projects announced its Board’s approval regarding the sub-division of Equity shares of face value of Rs 10 each into Equity shares of face value of Rs 1 each, i.e., a 1:10 stock split. They fixed March 31st, 2023 as the ‘Record Date’ for the same.

The company is engaged in the business of manufacturing and trading of “LED” lighting and LED lighting accessories. The Company manufactures and trades in broadly indoor and outdoor LED luminaries such as home lighting, office lighting, garden/compound lighting, Solar Powered Home LED lighting systems, etc. The application of product is in spaces like general lighting, architectural, residential, commercial, industrial, shop, hospitality, and outdoor.

Having a walkthrough of the financials of the company, the revenues have shown tremendous growth from Rs 1.53 crores in Q2 to Rs 20.75 crores in Q3. Net profits of the company, in congruence, have turned positive from losses of Rs 1.84 crores in Q2 to profits of Rs 2.43 crores in Q3.

Even though the company’s short-term reportings are attractive, it has underperformed on a YoY basis. The profitability ratios have turned negative with ROE being 0.2 percent in FY 20-21 to -15.53 percent in FY21-22. Moreover, the ROCE figures have moved from 1.47 percent in FY20-21 to -9.51 percent in FY21-22. Another parameter being the Net Profit Margins which shed from 0.36 percent in FY20-21 to -34.11 percent in FY21-22.

The debt to equity ratio has also increased from 0.11 in FY20-21 to 0.43 in FY21-22 leading to increased concerns for the stakeholders of the company.

For the quarter ending December 2022, the promoters have kept their shareholdings constant at 72.23 percent. FIIs too have kept their holdings stable at 0.3 percent.

Written by Amit Madnani

The post Multibagger stock hits 5% upper circuit today after it announces a 1:10 stock split appeared first on Trade Brains.

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