1:1 Bonus Allotment: Smallcap Chemical Stock At Rs 100, Hits New 52-Week High; Do You Own?

Grauer & Weil (India), a chemical company, touched a new 52-week high on April 10th as it turned ex-bonus for bonus shares of 1:1. It means the company is going to allot 1 bonus share to its shareholders on their existing 1 equity share. This is most likely to double the number of shares of investors in Grauer & Weil.

On BSE, Grauer & Weil ended at Rs 97.85 apiece, up by 0.51% with a market cap of Rs 4,436.63 crore. During the trading hours of April 10th, Grauer had touched a new 52-week high of Rs 105.75 apiece.

From its 1-year low of Rs 51.43 apiece, Grauer more than doubled the returns with gains of 105.6% on BSE.

Grauer turned ex-bonus on April 10 for its bonus issue of 1:1.

April 10th was the record date set by the company for the purpose of ascertaining the eligibility of
shareholders entitled to Bonus Equity Shares of the Company in the ratio of 1:1 i.e. 1 (One) new equity Share of Re. 1/- each for every 1 (One) existing Equity Share of Re. 1/- each held by the Shareholders of the Company.

Hence, only these shareholders will be eligible for bonus issues.

Bonus shares are free of cost given by listed companies to their existing shareholders from their profitability of respective financial years. In bonus issues, new equity shares are issued by the companies on existing shares in a specific ratio, however, face value remains the same post-bonus.

Growel has been a trendsetter in the General Metal Finishing Industry and a formidable player in the field of Electroplating & Specialty Chemicals and Engineering equipment.

As per Trendlyne data, here are the fundamentals for Grauer & Weil's stock price:

- Stock Price rose 88.61% and outperformed its sector by 61.72% in the past year.

- Debt to Equity Ratio of 0.03 is less than 1 and healthy. This implies that its assets are financed mainly through equity.

- Mutual Fund Holding remained the same in the last quarter at 0.01%.

- Interest Coverage Ratio is 93.63, higher than 1.5. This means that it can meet its interest payments comfortably with its earnings (EBIT).

- Price to Earning Ratio is 31.96, lower than its sector PE ratio of 51.54.

- Return on Equity(ROE) for the last financial year was 16.62%, in the normal range of 10% to 20%.

- Promoter Share Holding stayed the same in the most recent quarter at 69.05%.

- Promoter Pledges are zero.

However, as per Trendline, the consensus recommendation from 1 analyst for Grauer & Weil (India) Ltd. is STRONG SELL.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.