“The Board has made a proposal for the repurchase of fully paid shares with a par value of Rs.10 crore in each company through the open market at a price not exceeding Rs.1,200 per share and in an aggregate amount not exceeding Rs. We have approved the route,” the company said in a statement.
For the largest buyback size and price, the maximum number of shares to be bought back would be 1,75,000 shares, representing 1.37% of the company’s shares.
“The maximum buyback size represents 9.73% and 8.47% of the company’s total paid-up share capital and free reserves based on the most recent audited stand-alone and audited consolidated financial statements,” the company said.
On Friday, KDDL’s share was trading 2.53% higher at Rs 1,049 on the NSE. Over the past five years, the company has offered investors a multi-bagger return of 233.64%. Scrip is up 51.40% over the past six months.
KDDL is involved in the manufacture of watch components, high quality precision stamped parts and progressive tools for a wide range of engineering applications. The company also owns the largest luxury watch retail chain in India through its subsidiary Ethos Ltd.
The promoter currently owns approximately 49.08% of the company’s shares, with the remainder being publicly traded. The latest shareholding data available on the exchange puts FII holdings at around 20.11%. The company has yet to announce third quarter results. In the second quarter he reported a loss of Rs 1.4 billion and revenue increased by 35% year-on-year.
The company’s consensus forecast is currently a ‘strong buy’, according to Trendlyne data. Technically, the stock is trading above 7 out of 8 SMAs (Simple Moving Averages).
(Disclaimer: Expert recommendations, suggestions, views and opinions are those of the experts themselves and do not represent the views of The Economic Times)
