4,800 per cent returns in this low PE high ROE multibagger stock: Board announced bonus shares after Rs 82/share dividend; scrip hit 52-week high!

On Friday, one of the Top Gainers on BSE, shares of Kama Holding Ltd surged 4.87 per cent to make a new 52-week high of Rs 15,485 per share from its previous closing of Rs 14,765.25. At the closing bell, shares of the company were trading at Rs 14,945.3 per share with a spurt in volume by more than 2.21 times on BSE.

The sudden rise in the stock price is due to the company announcing bonus shares in the ratio of 4:1 i.e., 4 (four) fully paid equity shares of Rs 10 each for every 1 (one) fully paid existing equity shares of Rs 10 each held as on record date. The estimated date by which such bonus shares would be credited/dispatched is within 2 months from the date of Board Approval i.e., by October 31, 2023.

Earlier, the company declared an interim dividend of Rs 82/share for its equity shareholders having a face value of Rs 10 each. The ex-date for the dividend was August 31, 2023.

Kama Holdings Ltd is a core investment company while the principal activities of its subsidiaries are manufacturing, purchasing, and sale of technical textiles, chemicals, packaging films, and other polymers.

The company has a market cap of over Rs 9,500 crore and has delivered good profit growth of 39.5 per cent CAGR over the last 5 years. The company reported positive numbers in its Quarterly Results (Q1FY24) and annual results (FY23).

The shares of the company have a PE of 8.51x, an ROE of 37.82 per cent and a ROCE of 34.2 per cent. The stock gave multibagger returns of over Rs 4,800 per cent in a decade. Investors should keep an eye on this Small-Cap stock.

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