Trading at a discount of 77% from 52-week-high, penny stock declares stock split: Do you own?

“Board decided to split shares of the Company which results in improve liquidity in the market and will increase affordability to the new investor. Board after discussion decided to sub division of the nominal value of Rs. Equity shares of the company from the existing nominal value of Rs. 10/- each to nominal value of Rs. 1/- each,” said Family Care Hospitals in a stock exchange filing today.

The authorised share capital of the company is Rs. 75,00,00,000/- (Rupees Seventy Five Crore only) divided into 75,00,00,000 (Seventy Five Crore) equity shares of Rs. 1/- (Rupees One only) each, said the Board in a stock exchange filing.

During the quarter ended December 2022, the company recorded a net income of ₹11.16 Cr compared to ₹11.31 Cr reported during the quarter ended December 2021. The company’s net expenses stood at ₹9.41 Cr similar to the same quarter of FY22 and its EBIT reached ₹1.75 Cr during Q3FY23 compared to ₹1.90 Cr in Q3FY22. Family Care Hospitals said its net profit during Q3FY23 was ₹1.19 Cr as against ₹1.36 Cr in Q3FY22 and its EPS reached ₹0.37 during Q3FY23 as against ₹0.42 in the same quarter of FY22. The company is yet to declare its Q4FY23 earnings.

The shares of Family Care Hospitals closed today on the BSE at ₹11.76 apiece level, down by 1.67% from the previous close of ₹11.96. The stock recorded a total traded volume of 1,03,899 shares and a deliverable volume of 77,067 shares. In the last 1 year, the stock has fallen 40.74% and on a YTD basis, it has gained 0.17% so far in 2023. The stock touched a 52-week-high of ₹53.32 on (04/07/2022) and a 52-week-low of ₹9.80 on (01/03/2023), indicating that at the current market price, the stock is trading, 77.94% below the 1 year high and 20% above the 1 year low. During Q4FY23, the company recorded a promoter shareholding of 18.54% and a public stake of 81.46%.