Last Updated on: 27th June 2024, 11:40 am
The shares of this small cap company has given a massive return in 1 year,on 9th june 2023 the stock price was Rs.9200/share and on 7th june 2024 it was Rs.47439.95/share.This spike in share price started after Salzer Electronics acquired 74.91% stake in Jul,2019.
Kaycee Industries Ltd marks its birth in the pre independence period ,it was incorporated in the year 1942.
Share Split
The company has recently informed to the exchange that it is subdividing its 1(one)equity shares of Face Value Rs.100/-each into 10(ten) equity share having face value of Rs.10 each.
The company has fixed the record date 6th july,24.
Companies split their shares into smaller units mainly for increasing the liquidity and attract new investors.
As for example :the shares of Kaycee Industries Ltd is trading at Rs.59439/share,now if the company splits 1 equity shares to 10 ,then the price after split will be Rs.5943./ share.
Bonus Issue
Company has also announced bonus in the ratio 4:1, Means, the company will give 4 bonus equity shares of Face value Rs.10 each, for every one share held by an investor of Face value of Rs 10 each.
The record date for the same has been fixed as July 6 ,2024.
Why does a company issue Bonus Shares
Issuing bonus share is one of the way by which a company distributes it’s profit to the share holders
A bonus share Can be seen just an alternative to dividend.A company in general distributes its profit to theholders by way of dividend when it has sufficient cash, but when the company wants to preserve the cash aur it has a shortage of cash flow to rewards it’s shareholders it does so by issuing bonus shares.
Kaycee Industries Share Price Performance
The share price of the company stood at Rs59439,on 26th june 2024,up 2% or Rs.1165,for the day.The market cap of the company was Rs374 crores.
The stock made a 52week low of Rs.10400 and high of Rs.59439.
About the company
Kaycee Industries limited is the first Indian company to manufacture rotary switches and started it’s manufacturing before the Independence in the year 1942 . It is a Mumbai based company with its manufacturing set up located in Ambernath Thane
Product
The company manufacturers electrical equipment design indigenously and is used in different industries like Railway, the products of the company are as
1) Rotary switches
2) Rotary cam switches
3) Toggle and micro switches
4) Limit switches
5) Counters
6) Digital Time Totalizer.
7) Foot switches
Clients
Some of the important clients of Kaycee Limited are IndianNavy ,Indian Railways ,BHEL, Blue Star, Aditya Birla Group, SAIL,Tata ,Mahindra.
Promoter
Salzer Electronics Limited has acquired 74.91% stake 3 July 2019. The company presently hold 73.51% stake as on March ,2024.
| Deatails | Salzer Electronics Ltd | Kaycee Industries Ltd |
| Market Cap(Rs.in crores)26.06.24 | 1582 | 374 |
| Sales(Rs.in crores)yrly-mar2024 | 1136 | 48.81 |
| Profit Before Tax (Rs.in cr)yrly-mar2024 | 59 | 5.95 |
| Market cap to sales Ratio | 1.39 | 7.66 |
| Stock P/E | 36.6 | 83.4 |
Analysis
As we see in the table the Market cap to sales ratio of Kaycee Industries Ltd is ( 7.66) is much higher to Salzer Electronics Ltd(1.39),mean to say that the sales of Kaycee Ltd is lower as compared to its market cap.
The P/E ratio is also high of Kaycee Industries Ltd (83.4)is also very high,when we compare with Sazler Electronics Ltd(36.6).Although Salzer Electronics Ltd is its promoter the business line is same so we can compare as peers to have an idea about Kaycee Industries Ltd.
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