10:1 Bonus Issue Proposal on September 7: Penny Stock Under Rs 3 With Single-digit PE Delivers 1,949% Profit Growth

Pradhin Ltd, a diversified player in steel, agriculture, and dairy products, has announced that its Board of Directors will meet on 7th September 2025 to consider a bonus issue of equity shares. The proposed bonus issue is in the ratio of up to 10:1, meaning 10 bonus shares for every 1 fully paid-up equity share held, subject to statutory and shareholder approvals. The move is aimed at rewarding investors, improving stock liquidity, and enhancing long-term shareholder value.

In the same meeting, the board will also evaluate the company’s entry into trading and export of steel and related raw materials. This expansion comes in the backdrop of global supply chain realignments, including shifts across US-Asia and BRICS+ corridors, and India’s growing influence in steel exports. The company intends to leverage its logistics and commercial capabilities to tap new revenue streams while aligning with India’s “Make in India” initiative.

The management stated that the twin announcements – a potential bonus issue and foray into steel trading – reflect its commitment to sustainable growth and value creation. The company sees these steps as a diversification strategy that could support long-term scalability.

Earlier this year, on 10th March 2025, Pradhin Ltd had already rewarded shareholders through a 2:1 bonus issue, allotting 67.65 crore fully paid bonus equity shares of Rs 1 each. Alongside, the company also completed a stock split, reducing the face value of one equity share from Rs 10 to Rs 1.

On the financial front, Pradhin Ltd reported strong Quarterly Results. For Q1FY26, the company posted a net profit of Rs 7.17 crore, compared to Rs 35 lakh in the same quarter last year — a nearly 20-fold increase. Total income rose sharply to Rs 18.34 crore from Rs 51.47 lakh in Q1FY25. The strong growth has sparked discussions around the stock’s potential as a multibagger in the Small-Cap segment.

In addition to steel and dairy, the company is diversifying into agricultural waste management and processing. This includes ventures in biogas production, composting, biofertilisers, and waste-to-energy solutions, in line with its sustainability goals. The initiative further strengthens the company’s presence in high-growth, impact-driven sectors.

Founded in 1982, Pradhin Ltd continues to build its position across steel raw materials, sustainable agriculture solutions, and dairy products. With diversification across agri-solutions, steel trading, and green energy initiatives, the company is positioning itself for long-term growth opportunities in both domestic and international markets.

The promoters of the company hold 0.88 per cent stake and public shareholders own the remaining 99.12 per cent stake. The shares of the company have a PE of 3x whereas the industry PE is 24x. The company has a market capitalisation of Rs 33.5 crore and has delivered good profit growth of 59.1 per cent CAGR over the last 5 years. The stock is up by 27.52 per cent from its 52-week low of Re 0.29 per share.

Disclaimer: The article is for informational purposes only and not investment advice.