Muthoot Finance was trading higher for the fifth straight day, up 5 per cent at Rs 1,293 on the BSE. The stock of gold finance company surged 20 per cent in the past one week, against a 5 per cent rise in the S&P BSE Sensex.
The Board, at the meeting held on Saturday, July 18, had unanimously decided to defer the proposal to sub-divide the equity shares to the Company to a future date. The company said the board had discussed in depth the pros and cons of the stock split proposal. Though, the share price movement over the last few months and financial indicators were found to be ideal for a stock split proposal at the current scenario.
The decision to defer the proposal was taken considering the economic uncertainties that are currently prevailing due to the Covid-19 outbreak and related slowdowns being witnessed in the economy. Future updates on this matter will be intimated in due course, it said.
Granules India, too, hit a fresh high of Rs 276, gaining 5 per cent in intra-day today. The stock of pharmaceutical company rallied 15 per cent in the past one week after the company reported a strong set of numbers with Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin improvement of 503 basis points (bps) to 25 per cent in Q1FY21.
The company said the major growth contribution was due to a significant increase in production to cater to new product launches and an increase in the market share of existing products across the three verticals. The company launched Colchicine tablets and Butalbital APAP caffeine tablets through Granules Pharmaceutical Inc (GPI) during the quarter.
Emkay Global Financial Services revised the target price on the stock to Rs 340 from Rs 245 earlier. With strong operating performance and a leaner balance sheet, the brokerage firm expects Granules to re-rate.
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