Kwality is the top loser on the BSE currently, hitting a new low and 20% LC at Rs.31.65. With only pending sell orders on the counter, there volume today alone has risen 12.5 times over the 2-week average.
The company announced today morning that its Board will be meeting on 20th June to consider and approve proposal for buyback of securities and/or bonus issue of securities.
This does not seem to have down too well with the market as financially, it had done very poorly in Q4FY18 and this bonus seems more about placating the market than doing what is financially right.
Its net profit for Q4Fy18 dropped 96% (YoY) at Rs.1.3 crore while operating profit to interest was lowest in last 5 quarters at 1.8 times, indicating deteriorating ability to manage interest payments. Its interest outgo for Q4 was at Rs.76 crore, up 35% sequentially.
Last year, it split the face value from Rs.10 to Re.1 and last bonus was in 2010 in the ratio of 5:7.
Promoters currently hold 54.76% stake of which 79% is pledged – this has increased 17% on a QoQ. Interestingly, QoQ, promoter holding has come down 9%.