Padam Cotton Yarns Ltd (PCYL share) Stock Split: What You Need to Know
Padam Cotton Yarns Ltd, a textile company based in India, recently announced a stock split. This event has generated interest among investors, and it’s essential to understand what a stock split entails and its potential implications.
1. Padam Cotton Yarns Ltd Stock Split Details
Split Ratio: Stock Split From Rs.10/- to Rs.1/-. For every share held, the holder will receive 10 shares post the split adjustment.
Record Date: 27 Jun 2025 Shareholders on record as of this date will receive the new shares created by the split.
Ex-Split Date: [Insert the official ex-split date]. This is the first day the stock will trade at the new, adjusted price after the split. If you buy the stock on or after the ex-split date, you won’t receive the additional shares.
2. Impact on Investors
Share Price: After the split, the price of each share will decrease proportionally to the split ratio. For example, if the stock was trading at ₹100 before a 1:2 split, the price would theoretically adjust to ₹50. It’s crucial to remember that the total value of your investment remains the same.
Liquidity: Stock splits often increase liquidity, making it easier to buy and sell shares. The lower price per share can attract more investors, potentially increasing trading volume.
Affordability: A lower share price makes the stock more accessible to smaller investors who may have been previously unable to afford the pre-split price.
Psychological Impact: A stock split can sometimes create a positive psychological effect on investors, even though the fundamental value of the company doesn’t change. A lower share price can be perceived as more attractive.
3. Padam Cotton Yarns Ltd Performance and Outlook (Optional)
Padam Cotton Yarns Ltd. is an Indian company primarily engaged in the manufacturing of cotton yarn and providing consultancy in the textile-related business. They also engage in wholesale trading of agricultural pumping sets and implements.
Financial Performance (as of March 2025 quarter and FY 2024-25 data):
- Revenue:
- Q4 FY2024-2025 (March 2025 quarter) revenue jumped significantly by 45933.33% compared to the same period last year, reaching ₹13.81 Cr.
- On a quarterly basis, revenue increased by 21.14% since the December 2024 quarter.
- Total revenue for FY 2024-25 was approximately ₹14.22 Cr.
- Net Profit:
- Q4 FY2024-2025 (March 2025 quarter) net profit jumped 710.81% compared to the same period last year, reaching ₹2.26 Cr.
- However, on a quarterly growth basis, net profit fell by -72.9% since the December 2024 quarter.
- Net profit for FY 2024-25 was approximately ₹10.60 Cr.
- Profit Margins:
- Net Profit Margin in Q4 FY2024-2025 was 16.36%, a jump of 101.33% from the last year same period.
- Operating Profit Margin (OPM) shows a significant change, with 17.52% in March 2025, but was negative in previous quarters.
- Earnings Per Share (EPS):
- EPS for Q4 FY2024-2025 was ₹2.34.
- Annual EPS for FY 2024-25 was ₹8.21.
- Return on Capital Employed (ROCE): Averaged 17.2% from FY ending March 2023 to 2025, peaking at 73.4%in March 2025.
- Debt: The company is reported to be almost debt-free, or has a very low debt-to-equity ratio (0.00).
4. FAQs about Stock Splits
What is the difference between a forward and reverse stock split? A forward split increases the number of shares and decreases the price per share, while a reverse split does the opposite.
Does a stock split guarantee a rise in the share price? No. While increased liquidity can sometimes lead to price appreciation, it’s not guaranteed. The stock’s performance depends on the company’s fundamentals and market conditions.
How does a stock split affect my taxes? A stock split itself is not a taxable event. Your cost basis per share will be adjusted, but the overall cost basis for your investment remains unchanged.
Disclaimer: This information is for educational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any investment decisions.
