FIIs bought 1,200 shares & 200 per cent multibagger returns: Board announces 4:1 bonus share!

DSIJ Intelligence-1 / 16 Jul 2025/ Categories: Bonus and Spilt Shares, Multibaggers, Trending

FIIs bought 1,200 shares & 200 per cent multibagger returns: Board announces 4:1 bonus share!

The stock has given multibagger returns of over 200 per cent from its 52-week low of Rs 228.05 per share.

Karnika Industries Limited's Board of Directors has approved a significant increase in the company's Authorised Share Capital from Rs 25 crore to Rs 70 crore, subject to shareholder approval at an upcoming Extra-Ordinary General Meeting. Additionally, the Board has proposed a bonus issue of equity shares in a 4:1 ratio, meaning four new fully paid equity shares for every one existing share held, also pending shareholder approval. This bonus issue, totalling 4,95,98,000 equity shares valued at Rs 49,59,80,000, will be funded from the company's Free Reserves created out of the Profit and Securities Premium Account as of March 31, 2025. The bonus shares are expected to be credited or dispatched within two months from the Board approval date, subject to all necessary approvals.

Karnika Industries Ltd, established in 2017, is an ISO 14001:2015 certified company specialising in the manufacturing and trading of children's ready-made garments and dress materials. The company's product range includes a variety of items such as tops, dresses, denims, leggings, skirts, ponchos, shorts, joggers, capris, tees, rompers, sleep suits, pyjamas, winter wear and infant wear. The company markets its products under the main brand Karnika, with sub-brands like Karnika Care, Karnika Cool, Karnika Cube, Karnika Life, Karnika Key and Karnika Club.

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The company has a market cap of over Rs 800 crore and has a good return on equity (ROE) track record: 3 Years ROE 31.3 per cent. FIIs took a fresh entry and bought 1,200 shares of the company in FY25. The promoters of the company hold 73.39 per cent, FIIs hold 0.01 per cent and the promoters of the company hold 26.60 per cent as of March 2025. In FY25, the company reported net sales of Rs 173 crore and net profit of Rs 18 crore.

On Wednesday, shares of Karnika Industries Limited gained 7.5 per cent to Rs 696 per share from its previous closing of Rs 647.65 per share. The shares of the company have a PE of 50x, an ROE of 29 per cent and an ROCE of 25 per cent. The stock has given multibagger returns of over 200 per cent from its 52-week low of Rs 228.05 per share.

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