Nava Limited Announces Stock Split Amid Strong Quarterly Results: What Investors Need to Know
The Indian stock market closed flat today, following two consecutive days of significant losses that wiped out over ₹13 lakh crore in investor wealth. However, some companies reported strong quarterly results, causing a surge in their stock prices. Among them, small-cap company Nava Limited (Nava Ltd) made headlines by announcing a stock split, which has caught the attention of investors.
Stock Split Announcement by Nava Limited
Nava Limited revealed in an exchange filing that it will conduct a stock split, reducing the face value of its shares from ₹2 to ₹1 each. The stock split will involve dividing each fully paid-up equity share into two shares, each with a face value of ₹1. The decision is subject to approval from the company’s members through a postal ballot process, which will also result in changes to the capital clause (Clause V) in the company’s Memorandum of Association.
Interestingly, this will be Nava Limited’s second stock split, as the company previously split its shares in August 2005 from ₹10 per share to ₹2 per share.
Key Details of the Stock Split
Although the record date to determine the eligibility of shareholders for the stock split has not been announced yet, the company has stated that the record date will be disclosed in due course. The announcement of this stock split comes as part of Nava Limited’s ongoing efforts to make its shares more accessible to retail investors, often seen as a move that can drive liquidity and interest in the stock.
Nava Limited’s Impressive Quarterly Performance
In its latest quarterly report, Nava Limited posted a significant increase in its post-tax profit (PAT), which reached ₹331.97 crore for the second quarter of the financial year. This marks a substantial rise compared to ₹193.22 crore in the same quarter last year. Despite the growth in PAT, the company’s revenue for the quarter dropped slightly, with a decrease of ₹900.48 crore, bringing it to ₹921.98 crore.
Stock Performance and Long-Term Gains
Nava Limited’s stock has shown remarkable performance over the last year, with a year-on-year increase of 124%, making it a multi-bagger for investors. While the stock faced a decline of over 8% in the last five days and around 13% in the last month, it has posted an impressive 75% return over the last six months.
In terms of long-term performance, Nava Limited has been a standout performer, with a staggering 1,330% return over the last five years, proving to be a lucrative option for long-term investors. On the day of the announcement, Nava Limited’s shares closed at ₹897.30, up by 0.64% or ₹5.70 from the previous closing level.
Outlook for Investors
Given the recent strong quarterly performance and the stock split announcement, investors are closely watching Nava Limited’s stock, especially as it continues to deliver significant returns over the long term. While short-term fluctuations have occurred, the company’s overall growth trajectory and stock split move could offer fresh opportunities for both short-term traders and long-term investors.
