Multibagger stock gains 108% in 1 month, 1:1 bonus issue and dividend declared

With a market valuation of ₹248.01 Cr, Nettlinx Ltd. is a small-cap company with operations in the telecom industry. In 93+ locations, Nettlinx has a direct presence and conducts business. It has established itself as one of the top ISPs for supporting businesses in Telangana and Andhra Pradesh with completely digital media solutions. On Monday, the company declared 1st interim dividend for the financial year 2022-23 Rs. 0.40 per share and a bonus issue in a 1:1 ratio.

The company said in a stock exchange filing that “We wish to inform that the Board of Directors in the Board Meeting held on 06.03.2022 has declared 1st Interim Dividend for the Financial year 2022-23@ Rs. 0.40/- per share of the face value of Rs. 10/- each. The Company has fixed 17th March, 2023 as "Record Date" for the purpose of payment of 1st Interim Dividend on equity shares for the Financial Year 2022-23.”

“The Board considered and recommended the Bonus Issue in the ratio of 1:1 [i.e. 1 (One) equity share for every 1 (One) equity share held, subject to the approval by the shareholders and any other applicable statutory and regulatory approvals. Further, the bonus shall be credited to those shareholders who are holding the equity share as on a Record Date to be determined by the board,” said Nettlinx in a regulatory filing.

The total number of securities proposed to be issued or total amount for which the securities will be issued for the purpose of bonus shares is Rs.12,08,83,120 consisting of 1,20,88,312 equity shares of Rs.10/- each.

According to the firm, revenue from operations grew by 11% between Q3FY22 and Q3FY23, from Rs. 2.19 Cr. to Rs. 2.43 Cr. In comparison to Q3 FY22, when EBITDA was reported at Rs. 0.56 Cr, it was 31% higher in Q3 FY23 at Rs. 0.94 Cr. The company's profit before tax increased by 363% in the third quarter of FY 23 to Rs. 0.47 crore from Rs. 0.10 crore in the same quarter of FY 22. Nettlinx said its net profit was at Rs.0.34 Cr in Q3FY23 as against Rs. 0.04 Cr. in Q3FY22, a growth of 840% YoY.

Commenting on the results, Dr. Manohar Loka Reddy, Managing Director & Promoter, Nettlinx Limited, said, “The company is set to grow with the contracts for Leased Line bandwidth connectivity and P2P links that have been executed. We look forward to continue our growth momentum in year 2023-24 with a robust revenue increase and sustainable margins backed by healthy order book, and lucrative market opportunities available in providing of Dedicated internet leased line and P2P link in various segments like print and electronic media, Educational institutions, manufacturing units, healthcare & hospitality industry and several other SMEs that will assist the company to achieve full year guidance of 100% growth in revenue with 700% EBITDA margin.”

On Monday, the shares of Nettlinx closed on the BSE at ₹216.35 apiece level, down by 4.98% from the previous close of ₹227.70. The stock has produced a multibagger return of 169.09% over the past five years, and a multibagger return of 157.25% during the past year. The stock price has risen from ₹107.10 to the current market price on a YTD basis, resulting in a multibagger return of 102.01%. The stock has produced a multibagger return of 108.03% over the past month and a multibagger return of 172.48% over the past six months. The stock touched a 52-week-high of ₹272.00 (01/03/2023) and a 52-week-low of ₹53.50 (30/06/2022).