Kwality extends fall despite board mulling bonus issue, share buyback

The stock dipped 5% to Rs 31.65, extending its 30% fall in past seven trading days on the BSE.

Shares of Kwality have dipped 5% to Rs 31.65 per share, extending their 30% fall in past seven trading days on the BSE, despite the company today saying that its board will consider share buyback or bonus issue proposal on June 20, 2018.

The meeting of the board of directors of the Company will be held on Wednesday, 20th June, 2018 to consider and approve the proposal for buyback of securities and/or bonus issue of securities; and recommendation of interim dividend.

The stock of dairy products company is trading at its lowest level since May 9, 2014, has tanked 68% from its recent high of Rs 100 recorded on March 14, 2018. The S&P BSE Sensex was up 4% during the same period.

Kwality had reported a sharp 96% on year on year decline in its standalone net profit at Rs 12.9 million in March 2018 quarter (Q4FY18). The company had profit of Rs 349 million in the same quarter last year.

The company said net profit during the quarter under review impacted due to strategic investment in capex and capitalisation of new UNIT (value added products) on operational.

According to shareholding pattern data filed by the company with the stock exchange reveals that the promoters holding in Kwality has declined by 9.18 percentage points to 54.76% in March quarter from 63.94% in December 2017 quarter.

At 11:51 am; the stock was trading 3% lower at Rs 32.35 on the BSE, as compared to 0.93% rise in the S&P BSE Sensex. The counter has seen huge trading volumes with a combined 27.04 million equity shares representing 11.2% of total equity have changed hands on the NSE and BSE so far.