1:1 Bonus Issue, Rs 6/Share Dividend: Multibagger Smallcap Stock To Reward Shareholders In September

G N A Axles is among the world's leading manufacturers of automotive transmission components. The company trades on exchanges under smallcap basket and it has given impressive returns so far in 2023. It is a multi-bagger due to its robust performance over 5 years. With September just around the corner, GNA is set to reward its shareholders with not just dividends but also bonus shares as well. To become eligible for dividend and bonus issue benefits, shareholders should hold GNA shares in their demat accounts by the end of the record date.

On Tuesday, GNA's share price traded at Rs 1,017.40 apiece, down marginally from the previous session's closing price of Rs 1,020.05 on BSE. The stock has touched an intraday high of Rs 1021.75 apiece, which is near the 52-week high of Rs 1,065 apiece.

YTD, the stock has rallied over 45% on BSE, while in 5 years, it skyrocketed by nearly 168% on BSE.

GNA has the world's top OE manufacturers' customers. The company's scale gives them the manufacturing capability that OE customers demand, plus the flexibility and reliability to meet any production challenge.

Bonus Issue:

The company has revised its record date for bonus issues in the ratio of 1:1 to September 2nd from earlier August 11. Since the record date falls on a weekend, the shares will become ex-bonus on September 1st (Friday).

The record date is when the company will determine the eligibility of the shareholders for issuance of Bonus Equity Shares in the proportion of 1 equity share having a face value of Rs 10 each for every 1 existing equity share having a face value of Rs 10 each.

Hence, investors who hold G N A Axles by the end of September 1st in their demat accounts will be eligible to receive the bonus issue.

Bonus shares are issued in a certain proportion only to the existing shareholders free of cost. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.

Dividends:

The company has recommended a dividend of Rs 6 per equity share on the pre-bonus capital, representing 2,14,65,400 equity shares of the company.

Similarly, the record date has been shifted to September 2 from August 11, and hence, the stock will be ex-dividend on September 1.

Dividends are distributed also in a certain proportion by listed companies from their net profits earned in a respective financial year. The record date is proposed by the listed company's board of directors to determine the name of the eligible shareholders for dividends. As per BSE FAQs, to be eligible to receive dividends, investors have to have shares in the Demat account by record date. Meanwhile, the ex-dividend date is the day when the price of the equity share of the listed company gets adjusted for the dividend payout.

As per Trendlyne, G N A Axles have declared a total of six dividends since September 2018. In the past 12 months, the company paid a dividend of RS 5 per share.

Both bonus issue and dividend payout are subject to approval at the Annual General Meeting which will be held on September 29.

The remote e-voting for AGM will commence on September 26 and will end on September 28.

Profitability:

On a consolidated basis, G N A Axles earned a net profit of Rs 33.13 crore in the June 2023 quarter versus Rs 27.03 crore in the March quarter and Rs 34.02 crore in the June 2022 quarter. Consolidated revenue from operations stood at Rs 374.02 crore in Q1FY24 as against Rs 375.19 crore in Q4FY23 and Rs 383.76 crore in Q1FY23.

FY23 net profits stood at Rs 130.21 crore, while revenue was at Rs 1,582.93 crore.