1:5 Stock Split: Stock hits 5% upper circuit after it sets record date for share split

A micro-cap stock engaged in event management services surged 5 percent on the upper circuit after the company announced the record date for its 1:5 stock split. The move has drawn investor attention, reflecting positive sentiment around the company’s decision to increase liquidity and make the stock more accessible to a broader range of investors.

Price Variation

During Monday’s trading session, shares of Shangar Decor Ltd hit a 5 percent upper circuit to Rs.4.98 per share, rising from its previous close of Rs.4.75 apiece. The shares later retreated to Rs.4.89 per share. Over the past year, the stock delivered over 48 percent returns.

Record Date for Stock Split 

Shangar Decor Ltd. passed the necessary resolution on February 21, 2025, to carry out a stock split. As part of this decision, the company has set the record date for the stock split as Friday, March 7, 2025. 

The move will involve subdividing one equity share of the company, which has a face value of Rs.5 each, into five equity shares with a face value of Rs.1 each, fully paid-up. This strategic decision aims to enhance the liquidity of the stock, making it more affordable and accessible to a wider range of investors.

Also read: PSU Railway stock jumps 3% after emerging as the lowest bidder for ₹156 Cr EPC work

Financial Performance

Shangar Decor Ltd’s financial performance for Q3 FY25 showed significant growth, with revenue reaching Rs.6.55 crore, marking a 378 percent increase from Rs.1.37 crore in the corresponding quarter of the previous year. Additionally, the company’s Profit After Tax (PAT) surged by 4,800 percent, rising to Rs.1.47 crore from just Rs.0.03 crore in the same period last year.

Ratio Analysis

The company has a Return on Capital Employed (ROCE) of 12.41 percent and a Return on Equity (ROE) of 18.61 percent. Its Price-to-Earnings (P/E) ratio stands at 15.83, significantly lower than the industry average of 40.32. Furthermore, the company maintains a solid current ratio of 1.54, a debt-to-equity ratio of 1.12, and an Earnings Per Share (EPS) of Rs.0.3.

Company Profile 

Shangar Decor specializes in a wide range of services, including pre-wedding events, theme weddings, corporate events, religious ceremonies, property décor, lighting décor, and catering. The company focuses on delivering exceptional experiences for its clients across various event types. 

Founded in 1995, Shangar Decor boasts over 40 years of industry expertise, a testament to the extensive experience of its management team, particularly Mr. Samir Shah.

Written by – Siddesh S Raskar

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