The shares of MK Proteins Ltd. climbed 5% and locked at a 5% upper circuit on 5 March, following its 2:1 Bonus Issue to its Equity shareholders, as declared on 4 March.

In the company’s recent regulatory filing, it declared that the bonus equity shares will be issued in the ratio of 2:1, i.e., two bonus equity shares having a face value of Rs 1 each for every equity share held having a face value of Rs 1 each. The record date for the eligibility of shareholders entitled to receive bonus equity shares mentioned by the Board of Directors was 15 March 2024.

During the last financial quarters, the company showed a stellar performance in prime indicators of business, including operating revenues and after-tax profits. The operating revenues increased from Rs 13.64 crores during second quarter of financial year ending March 2024 to Rs 68.86 crores during Q3FY24. Similarly, the net profit after tax increased from Rs 41 lakhs to Rs 2.48 crores during the same time horizon.

However, every year, the company’s ratios showed a dip in numbers due to increased cost pressure. The return on equity (RoE) slipped from 25.71% during FY21-22 to 21.17% during FY22-23, and the return on capital employed (RoCE) shifted down from 35.13% to 30.87%.

As of December 2023, the company’s Promoters hold a 74.82% stake, followed by the Public (retail) Investors holding the remaining 25.18% stake in the company.

M K Proteins Limited is engaged in the ‘edible oil’ business, manufacturing and trading vegetable refined oil and by-products like wax, gums, and others. It also trades various products, including Rice Bran Oil and other items. The company was incorporated in 2012.

The company’s market capitalization is Rs 545.04 crores, and the stocks opened at Rs 42 and are currently locked in the 5% upper circuit at Rs 43.56 per share.

At 3:30 pm, the shares closed 4.95% higher at Rs 43.50 on NSE.