Small cap IT stock declares 1:1 bonus shares, scrip locked in 5% upper circuit

The company has said in a stock exchange filing that the Board of Directors has approved “1) Increase in Authorised Capital of the Company from ₹11,00,00,000/- (Rupees Eleven Crores) divided into 1,10,00,000/- (One Crores Ten Lakhs) equity shares of ₹10/- (Rupees Ten) each to ₹21,00,00,000/- (Rupees Twenty-One Crores) by the creation of additional 1,00,00,000 (One Crore) equity shares of ₹10/- (Rupees Ten) each and consequently, existing clause V of the Memorandum of Association of the Company. 2) Issue of Bonus Shares in the proportion of 1 (One) equity share for every 1 (One) existing equity shares held by the Members.”

In FY22, the company recorded a net revenue of ₹61.92 Cr compared to ₹60.61 Cr in FY21, representing a growth of 2.16% YoY. The company’s net expenses reached ₹35.58 Cr in FY22 down by 14.76% from ₹41.75 Cr reported in FY21. Innovana Thinklabs posted a net profit of ₹21.47 Cr in FY22, up by 38.04% from ₹15.55 Cr in FY21, whereas the company’s operating profit margin and net profit margin stood at 47.36% and 37.28% respectively in FY22. The EPS of Innovana Thinklabs stood at ₹20.46 in FY22 against ₹15.48 in FY21

On Friday, the shares of Innovana Thinklabs closed on the NSE at an upper circuit limit of ₹580.90 apiece, up by 5.00% from the previous close of ₹553.25. The shares of Innovana Thinklabs are approaching the upper circuit limit since 9th February as per the chart pattern. The stock recorded a total volume of 7,000 shares compared to the weekly average volume of 1,900 shares. The stock price climbed from ₹89.30 to the current market price during the past five years, resulting in a multibagger return of 492.76%. The stock rose from ₹121.80 to the current market price during the past three years, resulting in a multibagger return of 435.89%. The stock has appreciated 35% over the past year, but it has dropped 28% during the past month.