1:10 Stock Split and 6:11 Bonus Shares Approved; Shares Jump 3700% in 2 Years

Lorenzini Apparels Limited, listed on both BSE (Stock Code: 540952) and NSE (Stock Code: LAL) is currently experiencing positive performance in the stock market. The company operating in the apparel industry has seen a significant rise in its share prices, which is continuously reaching the upper circuit. Although there have been occasional dips in the form of lower circuits, the overall trajectory shows a notable improvement in the company’s stock performance.

Lorenzini Apparels hit the upper circuit of 5% yesterday after the board of directors approved bonus shares and stock split, today also it opened near the circuit but saw a big fall due to market volatility, however, it recovered later.

Today Lorenzini Apparel shares opened at Rs 427 and touched a day’s low of Rs 390.10, at the time of writing this article the stock is trading at Rs 428.65. It has increased by 48 percent in a month and has doubled in 6 months. It has seen a growth of 400 percent in the last 12 months.

Lorenzini Apparels Approved Stock Split

According to the company’s BSE filing on February 12, the company’s board of directors approved for the bonus shares. The decision involves dividing the face value of the company’s equity shares by Rs. 10/- (ten rupees) each to Rs. 1/- (One Rupee) each. Shareholders’ approval for this change will be sought through the postal ballot process. The company will notify the record date, to the stock exchanges soon.

Lorenzini Apparels Approved Bonus Shares

Apart from the stock split, the company has also proposed to issue bonus equity shares to the security holders (investors) of the company. The proposed ratio for this issue is 6 new fully paid equity shares of face value Rs 1 each. Meaning if someone has 11 shares then he will get an additional 6 shares as a bonus. However, the proposal is subject to shareholders’ approval, which will be sought through a postal ballot process.

Lorenzini Apparels Shares Surge 400% Within a Year

PeriodClosingGrowthReturns on ₹10k

The stock has risen 55.95% in three months, 114.40% in six months, and 294.17% in ten months. In the last 12 months, it has increased investors’ money 5 times. If you had invested ₹ 10,000 in it 12 months ago, the value of those shares would have increased to ₹49,907 today.

More than 235 Percent Growth in 2023

MonthOpeningClosingGain/ Fall
Total Returns in 2023237.94%

Investors who invested in it in 2023 earned quite well returns. The share price of Lorenzini Apparels Limited in January 2023 was ₹70.90 and on the last trading day of the year, it closed at ₹239.60 with a gain of 237.94%.

Lorenzini Apparels Shares Performance & Return (Compound)

In the table below you can check the company’s absolute returns and CAGR growth from listing. You can also check that if someone has invested a lump sum of Rs 10,000 then what is the value of those Rs 10,000 worth of shares today…

PeriodGrowthReturns on ₹10kCAGR
2Y3762%₹3.86 lakh521.46%
3Y6242%₹6.34 lakh298.78%
4Y7356%₹7.46 lakh193.85%
5Y8561%₹8.66 lakh144.07%
MAX4535%₹4.63 lakh89.64%
  • There has been an increase of 400 percent in a year. If we look at the performance of the last two years, it has seen a rise of 3862 percent.
  • In the past three years, it has increased investors’ money by more than 63 times.
  • For investors who invested Rs 10,000 in it five years ago, the value of those ₹10,000 shares has grown to ₹8.66 lakh.
  • The CAGR growth of the stock for the last 5 years is 144.07% and since the listing is 89.64%.

Lorenzini Apparels Shares Performance & Return (Year-wise)

YearOpenCloseGain/ Fall
multibagger stock Lorenzini Apparels Limited bonus and split
Lorenzini Apparels is engaged in the business of manufacturing, designing, and marketing readymade garments.

About the Company

Lorenzini Apparels Limited, incorporated in 2007, is engaged in manufacturing, designing, and marketing a diverse range of ready-to-wear apparel for both men and women. Lorenzini’s manufacturing process involves various stages including cutting, tailoring, stitching, finishing, inspection, and packing. Additionally, the company also outsources certain apparel manufacturing activities to third-party contractors.

Lorenzini’s products are marketed under the brand name “Monteil”, available through specialty stores/outlets and various e-commerce platforms. Their product portfolio is extensive, encompassing a range of fashionable apparel. For men, Lorenzini offers products such as coat suits, jeans (including stylish and fancy variations), and T-shirts. For women, the company provides items like jackets and jeans.

Lorenzini Apparels has distinct product categories that add depth and variety to its offerings. These categories include A-Polo, The Punk, The Trident, The Dougie, Dark Shadow, Blue Lagoon, The Wafer, Numero Uno, The Psychedelic, The Line Trap, Touch of Minimalism, The Slayer, and more.

Approximately 99% of Lorenzini’s revenue is generated from merchandise sales, and the remaining 1% is attributable to other income sources.

Fundaments Analysis of Lorenzini Apparels Ltd

Market Cap₹ 426 Cr.
Current Price₹ 420
High / Low₹ 475 / 73.0
Intrinsic Value₹ 37.6
Book Value₹ 17.8
Face Value₹ 10.0
ROCE17.1 %
ROE17.8 %
PEG Ratio1.89
EPS₹ 5.44
P/B Value24.1
Dividend Yield0.00 %
Stock P/E77.1
Industry PE19.6
OPM17.8 %
Quick Ratio0.86
Debt₹ 14.8 Cr.
Debt to equity0.82
Current liabilities₹ 23.5 Cr.
Current assets₹ 39.9 Cr.
NCAVPS₹ 25.1
Return on Assets6.51 %
Reserves₹ 7.88 Cr.
Cash Equivalents₹ 0.16 Cr.
Inventory₹ 19.6 Cr.

Lorenzini Apparels Financials

Quarter SalesProfitOPM %
Dec 202212.160.1711.27%
Sep 202317.911.8719.26%
Dec 202312.682.3717.82%

Lorenzini Apparels experienced positive growth in net sales, net profit, EBITDA, and EPS as compared to the same quarter last year, indicating strong financial performance in the specified period.

  • The company reported net sales of Rs 12.68 crore for the quarter, up 4.26% compared to the same quarter last year (Rs 12.16 crore in December 2022).
  • Net Profit for the quarter ended December 2023 is Rs 2.37 crore as against Rs 0.17 crore in December 2022, showing a significant growth of 1280.45%.
  • EBITDA for December 2023 is Rs 3.97 crore, showing a substantial growth of 179.58% from Rs 1.42 crore recorded in the same quarter last year.
  • Earnings Per Share (EPS) increased from Rs 0.17 in December 2022 to Rs 2.24 in December 2023. EPS is a measure of a company’s profitability per outstanding share of its common stock.

Last 5 Years Profit & Loss of Lorenzini Apparels

Figures in Rs. Crores

YearSalesProfitOPM %
Mar 201925.470.645%
Mar 202034.970.374%
Mar 202125.490.084%
Mar 202224.430.1213%
Mar 202343.762.5218%

Last 10 Years Compounded Sales and Profit Growth

PeriodSales GrowthProfit Growth
10 Years13.00%49.00%
5 Years13.00%42.00%
3 Years8.00%89.00%
  • Compound sales percentage is 8.00% and profit percentage is 89% and the stock has grown at 298.78% CAGR over the last three years.
  • Compound sales have grown at 13.00% and profits at 42.00% percent over the last 5 years and the stock has grown at a CAGR of 144.07%.
  • The combined sales percentage for the last 10 years is 13.00% and the profit percentage is 49.00%.

Lorenzini Apparels Shareholding Pattern

Mar 201955.91%44.09%
Mar 202055.91%44.09%
Sep 202262.91%37.10%
Mar 202362.91%37.10%
Jun 202362.91%37.09%
Sep 202362.91%37.09%
Dec 202362.91%37.09%

In the last three years, promoters have increased their stake by 7 percent.

5/5 - (2 votes)

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