AKI India: A Potential Multibagger Stock Set to Ex-Split Next Week, Surges 372% from 52-Week Low

Rajesh
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AKI India, a small cap consumer discretionary company, has emerged as an exciting investment opportunity with its market capitalization reaching Rs 147.98 Cr in the recent closing session. The company specializes in designing and manufacturing various leather products for equestrian activities, including horse covers, leather footwear, leather bags, belts, and finished leather. This blog post delves into AKI India's latest developments, including an upcoming ex-split event and notable stock performance.

AKI India: A Potential Multibagger Stock Set to Ex-Split Next Week, Surges 372% from 52-Week Low

AKI India's Ex-Split Announcement:

To enhance liquidity in the market, AKI India has officially declared a 1:5 stock split, scheduled to turn ex-split on June 22nd, 2023. In a recent filing with the stock exchange, the company stated, "The Record Date for the sub-division/split of 1 Equity share of face value Rs. 10/- each into 5 Equity shares of face value Rs. 2/- each has been set as Thursday, 22nd June, 2023." This ex-split event is expected to attract significant investor attention and potentially create new opportunities.

Financial Performance and Analysis:

In the fourth quarter of FY23, AKI India reported a net income of Rs 15.03 Cr, representing a 26.21% year-on-year decrease compared to Rs 20.37 Cr in Q4FY22. The company's net expenses in the March 2023 quarter stood at Rs 14.15 Cr, slightly lower than the Rs 14.88 Cr recorded in the same quarter of the previous year. The EBIT (earnings before interest and taxes) for Q4FY23 reached Rs 0.87 Cr, a decline from Rs 5.48 Cr in the corresponding quarter of FY22. Additionally, the net profit for AKI India in Q4FY23 was Rs 0.23 Cr, down from Rs 3.38 Cr in Q4FY22.

Market Performance and Potential:

At the closing session on Friday, Aki India Ltd shares on the BSE were valued at Rs 112.65 apiece, indicating a 2.36% increase from the previous close of Rs 110.05. The stock experienced a 52-week high of Rs 122.20 on April 19th, 2023, while its 52-week low of Rs 23.84 occurred on July 12th, 2022. Presently, the stock is trading approximately 7.81% below its 1-year high and an impressive 372.52% above its 1-year low, signifying its substantial growth potential.

Ownership Structure:

As of Q4FY23, AKI India's promoters held a significant share of 73.00%, while the remaining 27.00% was owned by the public. This ownership distribution underscores the confidence of the promoters in the company's prospects and the interest it has generated among retail investors.

Conclusion:

With the upcoming ex-split event and remarkable market performance, AKI India emerges as a potential multibagger stock. Investors looking for opportunities in the consumer discretionary sector should closely monitor the developments surrounding AKI India. However, it is advisable to conduct thorough research and analysis before making any investment decisions. Stay informed about the market trends and consider consulting with a financial advisor to make informed choices for your portfolio.

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