Rajnish Retail Ltd (BSE: 530525), a prominent player in the gems, jewellery, and watches sector, has executed a 5:1 stock split effective October 11, 2024. This marks the company's second sub-division in less than four years, following a previous 1:2 split in December 2021.
On the ex-split date, the stock experienced significant volatility, closing at Rs 11.85 on the BSE, down 11.52 per cent from its previous close. The company's market capitalization stood at Rs 158.97 crore, with an intraday low of Rs 9.62.
Despite recent fluctuations, Rajnish Retail has demonstrated impressive long-term performance, delivering returns of 68 per cent over the past year and a remarkable 1069% over two years. The company's P/E ratio is currently at 33.50x, with a return on equity of 1.47 per cent.
As of the latest trading session, Rajnish Retail's stock closed at Rs 11.85, with a market capitalization of Rs 158.97 crore. Some industry experts suggest that the current price point could be an attractive entry for investors, with projections indicating a potential skyrocket to 2000% profit over the next 8 months.
In a strategic move to boost capital, Rajnish Retail announced a private placement of 690,000 convertible warrants at Rs 24 per share on May 29, 2024, raising INR 16,560,000. This placement includes participation from new investors Rajnishkumar Singh and Anandkumar Rameshkumar Jain.
The company's Q1 FY 2024-25 financial results showcase strong growth, with revenue from operations soaring 231% quarter-on-quarter to Rs 1333.67 lakh. EBITDA and PAT also saw significant increases of 49 per cent and 61 per cent QoQ, respectively.
Rajnish Retail attributes its success to expansion into new markets and the introduction of diverse product lines. The company's board has also approved the issuance of up to 6,90,000 additional convertible warrants, subject to shareholder approval.
With experts predicting an increase in their stock prices, investors are keeping a close watch on Rajnish Retail.
