Multibagger Media Stock Draws Attention With Stock Split Announcement
Shares of Sri Adhikari Brothers Television Network rose 1.6 percent on January 6 after the media and entertainment company announced a 1:10 stock split, a move aimed at improving liquidity and broadening retail participation. The announcement comes after a staggering rally that has seen the stock surge nearly 89,000 percent over the past five years, making it one of the most talked-about smallcap multibaggers in the Indian equity market.
The stock split decision has further strengthened investor interest in the counter, which has already delivered exceptional long-term returns and frequently features on retail investors’ watchlists.
Board Approves 1:10 Stock Split Subject to Shareholder Nod
In a regulatory filing to the stock exchanges, Sri Adhikari Brothers said its board has approved the subdivision of equity shares in a 1:10 ratio. Under the proposal, one equity share of face value ₹10, fully paid-up, will be split into 10 equity shares of face value Re 1 each, fully paid-up.
“The Board of Directors has approved the sub-division/split of existing one equity share of face value of ₹10 each into ten equity shares of face value Re 1 each. The record date for the purpose of the above sub-division/split of equity shares shall be decided after obtaining shareholders’ approval through a Postal Ballot,” the company said in its exchange filing.
The company clarified that the stock split will be implemented only after shareholders approve the proposal, following which the record date will be announced.
Also Read : Trent Falls 9%; Analysts Advise Long Positions with Rs.3,700 Stop Loss in Zudio Parent Stock
Stock Split Aims to Improve Affordability and Trading Liquidity
Management stated that the primary objective behind the stock split is to make the shares more affordable and attractive for retail investors. By reducing the face value and trading price per share, the company expects improved participation from a wider investor base.
According to the filing, the split is expected to:
-
Enhance liquidity in the company’s equity shares
-
Encourage greater retail investor participation
-
Improve price discovery due to higher trading volumes
Market experts note that while a stock split does not change the company’s fundamentals or market capitalisation, it often improves marketability, especially in high-priced or thinly traded stocks.
Gravity-Defying Rally Keeps Investors Hooked
Sri Adhikari Brothers’ stock has delivered a near-unbelievable return of around 89,000 percent over the past five years, turning a modest investment into a significant sum. This extraordinary rise has placed the company among the most successful smallcap performers in recent market history.
Analysts point out that such rallies are typically driven by a combination of low base effect, improving business traction, strong investor sentiment, and increased retail participation. However, they also caution that stocks with such sharp appreciation tend to be volatile and highly sentiment-driven.
What Does the Company Do?
Founded in 1994, Sri Adhikari Brothers Television Network operates in the media and entertainment space, focusing on content production and syndication. The company supplies content to various broadcasters, aggregators, and satellite television networks across India.
Over the years, the company has built a niche presence in regional and general entertainment content, benefiting from the growing demand for diversified programming across platforms. Industry observers believe the long-term growth of India’s media and entertainment sector has also played a role in sustaining investor interest in the stock.
How Markets Typically React to Stock Splits
Historically, stock split announcements tend to generate short-term excitement, particularly in retail-heavy counters. Lower share prices post-split often make stocks psychologically more accessible, even though the intrinsic value remains unchanged.
Market participants said that in the case of Sri Adhikari Brothers, the split announcement reinforces the company’s retail-friendly image. “For high-return smallcap stocks, splits can act as a liquidity catalyst, though investors should not confuse this with a change in fundamentals,” said a market analyst tracking the media sector.
Caution Advised Despite Strong Sentiment
While the stock split announcement has been welcomed by investors, analysts urge caution given the stock’s extraordinary rally. Stocks that deliver multi-thousand percent returns often carry elevated valuation risks and can be sensitive to changes in sentiment.
Investors are advised to track:
-
Post-split liquidity and trading behaviour
-
Business performance and content pipeline updates
-
Corporate governance disclosures and filings
Experts also suggest that long-term investors should focus on earnings sustainability rather than price action alone.
What Investors Should Watch Next
The immediate trigger for the stock will be the outcome of the postal ballot seeking shareholder approval for the split, followed by the announcement of the record date. Market participants will also watch how the stock behaves after the split takes effect, particularly in terms of volumes and volatility.
As one analyst summed up, “The stock split is a structural move to enhance liquidity, but the real driver of long-term value will remain execution in the content business.”
For now, Sri Adhikari Brothers continues to capture market attention, combining a historic price rally with a corporate action that could further increase its visibility among retail investors.
