Small cap stock jumps after it reports 185% increase in net profits; Announces 1:1 bonus issue

The shares of one of the best stock brokerage firms gained up to 2.4 percent after the company announced third-quarter results and a bonus issued.

Small cap stock jumps after it reports 185% increase in net profits; Announces 1:1 bonus issue .

With a market capitalization of Rs 5,434.35 crore, the shares of Choice International Ltd were trading at Rs 546.10 per share, decreasing around 0.95 percent as compared to the previous closing of Rs 551.35 apiece.

Looking into the company’s Performance, Choice International Ltd’s revenue increased by 8 percent on a quarter-on-quarter basis from Rs. 191 crores in Q2FY24 to Rs. 207 crores in Q3 FY24. Further, revenue increased by 115 percent year on year from Rs. 96 crores in Q3FY23 to Rs.205 crores in Q3FY24.

Choice International Ltd’s net profit increased by 33 percent on a quarter-on-quarter basis from Rs. 30 crores in Q2FY24 to Rs. 40 crores in Q3FY24. Further, net profit increased by 185 percent year on year from Rs. 14 crores in Q3FY23 to Rs.40 crores in Q3FY24.

According to the company filing, Choice International Ltd’s board of directors considered and approved the Bonus Issue of Equity Shares in the ratio of 1:1 i.e., 1 Equity Share of Rs 10 each for every 1 Equity Share of Rs 10 each held by the shareholders of the Company.

Choice International Ltd has 110 locations, more than 175 in-house IT professionals, and 36k plus choice business associates serving over 974k clients.

The company claimed that its Advisory business is steadily growing and presently has an order book of Rs. 3.80 billion. This vertical has great development potential since the organization is established as a dependable partner to the government, enabling smooth project execution at the grassroots level.

The company’s recent shareholding pattern, The Promoters of the Company own 56.27 percent while Retail shareholders own a 28.26 percent stake in the company and Foreign Institutional Investors own a 15.44 percent stake.

Choice International offers a diverse variety of financial services, including broking and distribution, investment banking, financial services to business advisory, regulatory compliance for government bodies and other corporate organizations, and other ancillary services.