Penny stock jumps 6% after board announces bonus issue

Synopsis:
Chandra Prabhu International Limited board approved a 1:2 bonus issue, granting one Rs. 2 share for every two Rs. 2 shares held by shareholders.

This Penny stock, engaged in trading coal, synthetic rubber, chemicals, metals, agro commodities, fertilizers, petroleum products, agriculture commodities, and metal scrap with a customer-focused approach, jumped 6 percent after the company’s board of directors announced a bonus issue of 1:2.

With a market capitalization of Rs. 39.51 crores, the share of Chandra Prabhu International Limited has reached an intraday high of Rs. 22 per equity share, rising nearly 5.57 percent from its previous day’s close price of Rs. 20.84. Since then, the stock has retreated and is currently trading at Rs. 21.37 per equity share. 

What is the news?

Chandra Prabhu International Limited’s Board of Directors has approved issuing bonus shares in the ratio of 1:2, meaning shareholders will receive 1 fully paid-up equity share of face value of Rs. 2 each for every two fully paid-up equity shares of face value of Rs. 2 held.

Company Overview

Chandra Prabhu International Limited (CPIL) was incorporated in 1984 and engaged primarily in the trading of coal, synthetic rubber, chemicals, metals, and agro commodities. 

The company also operates warehouses with a capacity of approximately 40,000 sq.ft. Chandra Prabhu International Limited (CPIL) trades a diverse range of products such as synthetic rubber (including nitrile rubber and styrene butadiene rubber), fertilizers, agricultural commodities (rice, sugar, wheat, edible oils, and dry fruits), petroleum products, and metal scrap.

Recent quarter results

Coming into financial highlights, Chandra Prabhu International Limited’s revenue has decreased from Rs. 291.88 crore in Q1 FY25 to Rs. 274.90 crore in Q1 FY26, which has dropped by 5.82 percent. The net loss of the company increased from Rs. 1.20 crore in Q1 FY25 to Rs. 4.06 crore in Q1 FY26. Chandra Prabhu International Limited’s revenue has grown at a CAGR of 52.89 percent over the last five years. 

In terms of return ratios, the company’s ROCE and ROE stand at 8.81 percent and 4.90 percent, respectively. Chandra Prabhu International Limited has an earnings per share (EPS) of Rs. -0.27, and its debt-to-equity ratio is 1.65x.

Written By – Nikhil Naik

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