Textile stock to consider its first stock split in its upcoming board meeting: check details

Textile player Sportking India buzzed in trade on July 10 and ended with good gains of 3.5 per cent at Rs 922.2. At the day's high, the stock surged even more and hit levels of Rs 947. Meanwhile, on the NSE it ended higher by 3.77 per cent or Rs 33.6 at Rs 923.9 per share.

The spurt in the stock came as the company announced that in its upcoming board meeting scheduled to be held on  July 20 (Saturday), the company will consider and approve the proposal to split shares.

If approved this will reportedly be the company’s first stock split. A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares

Furthermore, the company's filing noted that it will also consider and approve the financial results of the company for the quarter ended June 30, 2024.

The company's filing also added that it will also take up any other business with the permission of chair.

The stock has largely underperformed the headline index Nifty and delivered over 10 per cent return in the last year, while its 5-year return has been in the negative.

The company's net sales during the March quarter were recorded at Rs 611.18 crore, up 14.52 per cent from Rs 533.67 crore in March 2023. Its net profit, however, fell 26 per cent on-year to Rs 22.86 crore as against Rs 30.86 crore recorded during the same period last year. EBITDA, though, stood higher at Rs 70.03 crore, up 20.7 per cent on-year.

Sportking India Limited is engaged in the business of manufacturing, purchase and sale of textile. The company's peers include KPR Mill, Swan Energy, Trident and Vardhman Textiles.