What do you mean by Stock Split?
A stock split is a decision made by the board of directors that divides the company’s current shares into a larger number of shares. In the end, the investor’s investment value remains unchanged, but the market value of a single share is reduced in proportion to the number of shares taken from a single share.
PDS Multinational is a trading and distribution company of Fashions. The total valuation (market value) of the company is ₹4,386 crore. The price of one share of the company is ₹ 1,692.10 in BSE market today and ₹ 1,727.35 in NSE market today. PDS Multinational was established in the year 2011.
As per the report provided by the company, the total income for the last year was Rs 41.876 crore and the total sales were Rs 41.124 crore. The company’s net profit stood at Rs 2.675 crore. PDS Multinational Fashions has paid tax of -0.072 crores in the current year.
A textile company, for example, has announced a stock split:
About the business:
| BSE Code: | 538730 |
| NSE Code: | PDSMFL |
PDS Multinational Fashions Limited: PDS Multinational Fashions Limited is a garment trading company. The Company’s subsidiaries are in the business of holding investments, designing, developing, marketing, sourcing, and distributing readymade clothes of various types. The corporation is a small-cap stock.
PROS
- Company is expected to give good quarter
- Company has delivered good profit growth of 76.92% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 24.55%
CONS
- Tax rate seems low
Splitting the stock
He divided one equity share of the company with a face value of ten dollars into five (five) equity shares with a face value of two dollars each. The Board will determine the Record Date for the split/subdivision of Equity Shares, which will be communicated to the Stock Exchanges in due time. As a result, the split will be 5:1.
After the split, the stock price changed. As a result of the split, the price of the stock, which is presently trading for Rs. 1741.2, will be reduced by 1/5, or Rs. 348.24, and investors who held 100 shares of the stock before the split would be entitled to receive 500 shares of the same.
Disclaimer
The preceding information is provided solely for the purpose of providing information regarding the stock split and is not intended to be a recommendation to purchase the shares.
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Tags- Stock Split, Stock Split, Stock Split
