Another positive development for retail investors and the company’s valuation is the bonus issue
It appears that the management has recognized the importance of increasing market capitalization.
While the exact reason for this move is unclear, it could be due to several factors:
- Attracting larger customers
- Seeking private funding
- Promoter dilution, etc.
The best investment returns could come from price re-rating combined with business growth (a Value plus Growth Strategy).
The first phase—price re-rating—seems to have already occurred in Kitex. Next, if the company can deliver sustained business growth, the stock has the potential to multiply.
Disclaimer: Invested in the range of ₹150 to ₹200. These are my personal views, and my investment perspective is, of course, very long-term oriented.
cfdc3c26-b494-491b-a026-a5083ee85f00.pdf (275.1 KB)
| Subscribe To Our Free Newsletter |
