1:5 Stock Split: Stock in Focus After Setting Record Date for Share Split

Synopsis: The company has announced an important corporate action after receiving shareholder approval, setting a key date to identify eligible investors for a share subdivision aimed at improving share accessibility and liquidity. 

The shares of this micro cap company majorly engaged in manufacturing heavy engineering castings in grey cast iron, alloy cast iron, and stainless steel and many more were in focus  after the company fixes record date for the stock split 

With the market capitalization of Rs. 435 Crores, the shares of Simplex Castings Ltd were trading at around Rs. 531 per share which is 14 percent discount from its 52-week high of Rs. 624 per share and is trading at a P/E of 19.9 whereas industry P/E stands at 24.8 

What is the NEWS

The company has informed the stock exchanges that it has fixed the record date for its approved equity share subdivision, also known as a stock split. This follows the approval received from shareholders through a postal ballot on July 2, 2026. The record date has been set as July 20, 2026, and only shareholders whose names appear in the company’s records on this date will be eligible to receive the split shares.

Under the approved proposal, every one equity share with a face value of ₹10 will be subdivided into five equity shares with a face value of ₹2 each. While the number of shares held by eligible investors will increase fivefold, the total value of their investment remains unchanged immediately after the split, as only the face value and the number of shares are being adjusted.

The primary objective of such a share subdivision is to reduce the per-share price, making the stock more affordable for a wider set of investors. Companies often undertake stock splits to improve trading liquidity by increasing the number of shares available in the market without altering the company’s overall market value or the proportionate ownership of existing shareholders.

If you owned 10 shares with a face value of ₹10 each before the split, after the 1:5 stock split you would own 50 shares with a face value of ₹2 each. While the number of shares increases, the total value of your investment remains unchanged immediately after the split. 

About the Company and Financials

Simplex Castings Limited is an Indian manufacturer of iron castings and engineering products, serving industries such as mining, cement, power, railways, steel and heavy engineering. The company produces a wide range of cast components, including wear-resistant and alloy steel castings, and caters to both domestic and export markets. With decades of manufacturing experience, it focuses on supplying customised casting solutions for industrial applications while strengthening its presence across key infrastructure and manufacturing sectors 

Year on Year analysis: Revenue from operations has decreased from Rs. 67 Crores in Q4 FY25 to Rs. 55 Crores in Q4 FY26, down 18 percent. Operating profit has increased from Rs. 7.84 Crores to Rs. 10.89 Crores, up 39 percent and net profit has increased from Rs. 3.72 Crores to Rs. 6.18 Crores, up 66 percent. 

Quarter on Quarter analysis: Revenue from operations has increased from Rs. 47.5 Crores in Q3 FY26 to Rs. 55 Crores in Q4 FY26, up 15 percent. Operating profit has increased from Rs. 7.70 Crores to Rs. 10.89 Crores, up 41 percent and net profit has increased from Rs. 4.76 Crores to Rs. 6.18 Crores, up 29 percent.  

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