1:5 Stock Split: Textile Stock Jumps After Board Approves Share Split

Synopsis: Le Merite Exports approved a 1:5 stock split, reducing the face value from Rs. 10 to Rs. 2, aiming to improve affordability, liquidity, and attract more retail investors.

This Small-Cap Textile Stock, engaged in manufacturing and exporting textiles and garments, focusing on high-quality fabrics, apparel production, and supplying products to domestic and international markets, jumped 1.39 percent after the company board approved a share split issue of 1:5.

With a market capitalization of Rs. 1,114 crores, the share of Le Merite Exports Limited has reached an intraday high of Rs. 449.50 per equity share, rising nearly 1.39 percent from its previous day’s close price of Rs. 443.35. Since then, the stock has retreated and is currently trading at Rs. 445 per equity share. 

What is the News?

Le Merite Exports Limited has announced that its Board of Directors approved a 1:5 stock split in a meeting held on Wednesday, April 8, 2026. The move aims to improve share affordability, enhance liquidity, and attract greater participation from retail investors in the market.

The board has decided to issue a stock split at a ratio of 1:5, meaning that each equity share with a face value of Rs. 10 will be divided into five equity shares with a face value of Rs. 2 each.

For example, if a shareholder owns 1,000 shares valued at Rs. 10 each in Le Merite Exports Limited, after the 1:5 stock split, their total holding will increase to 5,000 shares with a face value of Rs. 2 each. The value of the holding will remain unchanged.

Global Market Presence

Le Merite Exports Limited has built strong and long-standing relationships with customers across global markets, supported by exclusive tie-ups and agents in major importing countries of cotton yarn and fabrics. Its presence spans key regions including Bangladesh, China, Turkey, Italy, Vietnam, UAE, USA, and several others, strengthening its international reach.

The company currently exports to around 37 countries and generates annual export revenue of over Rs. 400 crore. With its expanding global network and growing demand, LMEL aims to scale its export revenue to Rs. 1,000 crore within the next two years.

Company Overview

Le Merite Exports Limited is an Indian textile manufacturing and export company specializing in cotton yarns and fabrics. Founded in 2003 and based in Mumbai, it operates as a vertically integrated producer serving global textile markets. 

Le Merite manufactures and exports cotton, cotton-blended, and synthetic yarns along with greige and finished fabrics. Its product range includes combed, carded, compact, organic, and melange yarns, plus woven fabrics like dobby and satin.

Recent Quarter Results

Coming into financial highlights, Le Merite Exports Limited’s revenue has decreased from Rs. 95.34 crore in Q3 FY25 to Rs. 73.49 crore in Q3 FY26, which is a drop of 22.92 percent. The net profit has grown by 780 percent from Rs. 0.25 crore in Q3 FY25 to Rs. 2.20 crore in Q3 FY26.

Le Merite Exports Limited’s revenue and net profit have grown at a CAGR of 17.21 percent and 10.76 percent, respectively, over the last five years.

In terms of return ratios, the company’s ROCE and ROE stand at 7.80 percent and 4.74 percent, respectively. Le Merite Exports Limited has an earnings per share (EPS) of Rs. 4.56, and its debt-to-equity ratio is 0.64x.

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