1:1 Bonus Share: Penny stock in green after board approves bonus issue

The shares of lending carbon emissions management gained up to 2 percent after the company’s board considered and approved the bonus issue in a 1:1 ratio.

Price movement

With a market capitalization of Rs 291.39 crore, the shares of KBC Global Ltd were trading at Rs 1.12 per share, increasing around 0.90 percent as compared to the previous closing price of Rs 1.11 apiece.

Reason for Rise

The shares of KBC Global Ltd have seen positive movement after the board of directors considered and approved the bonus issue in a ratio of 1:1 which means 1 Equity Share for every 1 fully paid-up Equity Share of Rs. 1 each held, subject to approval of the shareholders of the company.

Financial condition

Looking forward to the company’s financial performance, revenue tumbled by 37 percent from Rs 11.22 crore in Q3FY24 to Rs 6.20 crore in Q3FY25 but during the same time, net loss shrunk by 78 percent from Rs 1.98 crore to Rs 0.43 crore.

Also read: EMS stock hits 10% upper circuit after reporting 3050% YoY revenue growth in Q3

Business Model

The company operates in Real Estate and Civil Contracting. In Real Estate, it acquires properties, forms JVs, and markets projects under the “Hari” brand. In Civil Contracting, it bids for tenders, selects L1 bidders, allots work orders, and executes projects.

Financial Metric

In the return ratios, the return on equity (RoE) in FY24 stood at around (21.49) percent, and the return on capital employed was around (2.56) percent. The debt-to-equity ratio stood around 0.08 as of FY24.

Company profile

KBC Global Limited is an India-based company that is engaged in the business of real estate development and construction contracts. The Company’s segments include Development of Real Estate Property and Civil Contracting Business.

Written by Abhishek Singh

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