Kolkata: Ahmedabad-based Gokul Agro Resources has made a momentous announcement for its shareholders. The company which is engaged in the oil used in the FMCG business, has announced a stock split. The management has also inform the company that the record date of the split is October 14. It is expected that shareholders will benefit from this management step.
Mechanics of the stock split
Gokul Agro Resources has decided that it will split a share of Rs 2 into two. Obviously, the face value of the new shares will be Rs 1. The management announced this decision in its 11th Annual General Meeting in September. The move will double the number of shares, and therefore liquidity, of the stock in the market. The share price will drop and small investors will find it easier to invest in the stock of the company.
Market cap of Gokul Agro Resources
The market cap was of the company was Rs 5,723.94 crore on October 8. The stock is gaining visibility among the investors. Reports state that in 2023, Gokul Agro Resources raised capital through a rights issue. The company is yet to pay dividend.
Stock performance of Gokul Agro Resources
On October 8, the Gokul Agro Resources stock was at Rs 388.95, down 0.40%. Around 10:30 on October 9, the stock of the company was trading at Rs 368.55, down Rs 16.95 (or 4.40%). However, over the past five years, it has generated a return of 2,547%. Over the past one month the return has been 8.51%.
Profit growth
The financial performance of Gokul Agro Resources has been significant. In the past five years, the profits rose by a CAGR of 66.8%. The rising profit graph and cash flow created a favourable impact among the investors. With the stock split, more stocks will be available for trading, which will further boost confidence.
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