Shangar Decor Ltd Hits Upper Circuit After Announcing 1:5 Stock Split Record Date
Shangar Decor Ltd : A micro-cap stock in the event management sector, Shangar Decor Ltd, surged 5% on the upper circuit after the company declared the record date for its highly anticipated 1:5 stock split. This strategic move has ignited investor interest, as it aims to enhance the stock’s liquidity and make it more accessible to a broader range of investors.
Stock Performance & Market Reaction
During Monday’s trading session, Shangar Decor Ltd saw a sharp rise, hitting the 5% upper circuit at ₹4.98 per share from its previous close of ₹4.75. However, the stock later settled at ₹4.89 per share. This recent uptrend aligns with its impressive 48% returns over the past year, underscoring strong investor confidence in the company.
Details of the Stock Split
The company has officially passed a resolution on February 21, 2025, approving the stock split. As per the announcement, the record date for the split is Friday, March 7, 2025.
- Before the split: 1 equity share of ₹5 face value
- After the split: 5 equity shares of ₹1 face value each
The primary goal behind this split is to increase liquidity and make shares more affordable for retail investors. Stock splits often indicate management’s confidence in the company’s growth and can lead to increased trading volumes in the future.
Financial Performance & Growth
Shangar Decor Ltd has demonstrated a stellar financial performance, particularly in the third quarter of FY25. The company’s revenue surged 378% YoY, reaching ₹6.55 crore, compared to ₹1.37 crore in the same quarter last year.
The company’s Profit After Tax (PAT) skyrocketed by 4,800%, jumping to ₹1.47 crore from just ₹0.03 crore in Q3 FY24. This exponential growth showcases the company’s operational efficiency and expansion potential in the event management industry.
Key Financial Ratios
The company’s fundamental strength can be analyzed through its financial ratios, as shown in the table below:
| Metric | Value | Industry Avg. |
|---|---|---|
| Market Cap | ₹47.9 Cr. | – |
| Stock Price (CMP) | ₹4.89 | – |
| 52-Week High/Low | ₹12.0 / 2.64 | – |
| Stock P/E | 16.1 | 26.4 |
| Book Value | ₹0.84 | – |
| ROCE | 6.94% | – |
| ROE | 10.7% | – |
| Face Value | ₹5.00 | – |
| Promoter Holding | 2.96% | – |
| Debt to Equity | 1.12 | – |
| Price to Earnings | 16.1 | 40.32 |
| Pledged Percentage | 0.00% | – |
| QoQ Profit Growth | 88.5% | – |
| Quarterly Profit Variation | 4,800% | – |
| Intrinsic Value | ₹3.63 | – |
| Graham Number | ₹2.40 | – |
| RSI | 38.2 | – |
| EPS | ₹0.30 | – |
| No. of Equity Shares | 9.79 Cr. | – |
| PEG Ratio | 0.51 | – |
| 200 DMA | ₹5.89 | – |
| Free Cash Flow (3Yrs) | ₹-2.60 Cr. | – |
| Current Free Cash Flow | ₹3.01 Cr. | – |
| Total Debt | ₹9.23 Cr. | – |
Company Overview
Founded in 1995, Shangar Decor Ltd is a well-established player in the event management industry. With over 40 years of expertise in the sector, the company has built a reputation for excellence in:
✔ Pre-wedding events & theme weddings
✔ Corporate events & religious ceremonies
✔ Property décor & lighting décor
✔ Catering services
Under the leadership of Mr. Samir Shah, the company has consistently delivered high-quality event experiences, cementing its position in the market.
What This Means for Investors
The stock split is a significant corporate action that aims to improve stock liquidity and attract more retail participation. Generally, stock splits result in higher trading volumes and may positively impact investor sentiment.
Additionally, the company’s strong financial performance, coupled with its expansion in the event management industry, makes it a compelling stock to watch. However, given the relatively low promoter holding (2.96%) and high debt-to-equity ratio (1.12), investors should carefully analyze their risk appetite before making investment decisions.
Final Thoughts
With an impressive profit surge, strategic stock split, and growing industry presence, Shangar Decor Ltd has positioned itself as a high-growth potential stock in the micro-cap segment. As the March 7 record date approaches, investor interest is likely to remain high, with potential for increased trading activity.
For investors looking at small-cap opportunities in the event management sector, Shangar Decor Ltd could be a stock to watch in the coming months.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.