Multibagger stock announces record date for 1:2 bonus share: Details inside

A small cap company with a market valuation of ₹139.55 crores that operates in the industrial sector is GKP Printing & Packaging Ltd. G.K.P Printing & Packaging Ltd. is one of the top corrugated box manufacturers in the industry, and it serves a variety of sectors, including garment exports, steel utensils, playing cards, liquor, toys, pharmaceuticals, printers, engineering, confectionery, and FMCG. One of the top producers and exporters of cardboard boxes, corrugated boxes, display boxes, mailer boxes, labels, stickers, tags, inserts and leaflets, mono cartons, etc. in India is the company. In order to determine the eligibility of the shareholders for the purpose of a 1:2 bonus share, the Board of Directors of the company has announced the record date which existing shareholders and potential investors should be aware of.

The company has said in a regulatory filing that “In continuation to our intimation on outcome of Board meeting held on 01st Aug, 2022 pertaining to the recommendation of issue of Bonus Equity Shares in the Ratio of One (1) new fully paid up Bonus Equity Shares of Rs.10/‐ each for every one (2) existing fully paid Equity share of Rs. 10/‐ each and subsequent to the approval of the shareholder of the Company at the duly held & convened Annual General Meeting on 05th Sept, 2022, the Company has fixed Monday, 19th Sept, 2022 as the “Record Date" to determine the eligible shareholders entitled to receive the Bonus Shares.”

The shares of G K P Printing & Packaging Ltd fall 4.99% in trade today to hit the lower circuit, at ₹95.15. The stock has produced a multibagger return of 393.77% over the past five years and a multibagger return of 421.37% during the past three years. The stock managed to produce a multibagger return of 136.52% over the past year, but YTD, the stock has dropped 34.15% so far in 2022. 

Data from Value Research indicates that the firm is virtually debt-free, and when we take into account multibagger returns and bonus share declaration, they all add up to something akin to frosting on the cake. The company has a book value per share of 14.84 which results in a price-to-book value (P/B) ratio of 6.41, indicating that the stock may be considered as an overvalued stock due to its high P/B ratio if compared to its peers such as Satia Industries, T N Newsprint, Seshasayee Paper, Andhra Paper, West Coast Paper, JK Paper and Century Textiles.