Penny Realty Stock Under ₹2 Soars 5% After Bonus Issue Announcement
Kretto Syscon Limited, a company engaged in real estate development and IT solutions, sees its stock hit a 5% upper circuit after announcing a 2:25 bonus issue. The record date for the bonus shares is set for August 25, 2025.
Real EstateBonus IssueKretto Syscon LimitedStock MarketFinancial PerformanceReal EstateAug 20, 2025
The stock, which is currently trading below Rs. 2, has a market capitalization of Rs. 113.52 crores. The 5% upper circuit was hit on Wednesday, marking a substantial increase from the previous closing price of Rs. 1.73 per share. The news of the bonus issue has clearly boosted investor sentiment, leading to the sharp rise in the stock price.
The bonus issue, which was approved by the shareholders through a postal ballot on August 16, 2025, will see shareholders receiving two new fully paid-up equity shares of Rs. 1 each for every twenty-five existing fully paid-up equity shares they hold. The board of directors made this decision during a meeting held on July 15, 2025, at the company’s registered office.
Kretto Syscon Limited, established in 1994, has a diverse portfolio that spans real estate and technology. The company focuses on developing residential and commercial properties across India, including office complexes and rural and urban land. In addition to real estate, Kretto Syscon is involved in software design, development, and maintenance, offering custom software solutions and IT services on a subcontracting basis.
The company’s technology services cover a wide range of areas, including HR, payroll, and insurance claims software, as well as computer hardware manufacturing and maintenance. Kretto Syscon also develops and distributes application software for both domestic and offshore clients, making it a well-rounded player in the IT and real estate sectors.
Recent financial results have been impressive, with Kretto Syscon Limited’s revenue increasing from Rs. 1.03 crore in Q1 FY25 to Rs. 2.76 crore in Q1 FY26, a growth of 167.96%. The net profit has also grown by 207.35%, from Rs. 0.68 crore in Q1 FY25 to Rs. 2.09 crore in Q1 FY26. Over the last three years, the company’s revenue and net profit have grown at a compound annual growth rate (CAGR) of 46.63% and 184.16%, respectively.
In terms of return ratios, Kretto Syscon Limited’s Return on Capital Employed (ROCE) and Return on Equity (ROE) stand at 12.9% and 9.76%, respectively. The company’s earnings per share (EPS) is Rs. 0.07, and its debt-to-equity ratio is a healthy 0.01x.
The announcement of the bonus issue and the strong financial performance have clearly boosted investor confidence in Kretto Syscon Limited. As the company continues to grow and expand its operations, it is likely to remain a popular choice for investors looking for value in the real estate and IT sectors.
Frequently Asked Questions
What is a bonus issue?
A bonus issue is a type of corporate action where a company issues additional shares to its existing shareholders for free, usually in proportion to their current holdings. This increases the number of shares outstanding and dilutes the value of each share, but it does not change the total market value of the company.
Why did Kretto Syscon Limited's stock hit a 5% upper circuit?
Kretto Syscon Limited's stock hit a 5% upper circuit due to the announcement of a 2:25 bonus issue. The board set the record date for the bonus issue, which significantly boosted investor sentiment and led to a sharp rise in the stock price.
What is the record date for the bonus issue?
The record date for the bonus issue is set for August 25, 2025. This date is used to determine which shareholders are eligible to receive the bonus shares.
What is Kretto Syscon Limited's market capitalization?
Kretto Syscon Limited has a market capitalization of Rs. 113.52 crores.
What are the recent financial highlights of Kretto Syscon Limited?
Kretto Syscon Limited's revenue increased by 167.96% from Rs. 1.03 crore in Q1 FY25 to Rs. 2.76 crore in Q1 FY26. The net profit grew by 207.35% from Rs. 0.68 crore in Q1 FY25 to Rs. 2.09 crore in Q1 FY26. The company's ROCE and ROE are 12.9% and 9.76%, respectively.
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