Veljan Denison, a penny stock with a market cap below Rs 1,000 crore in auto components and equipment, will be in focus this week after it revised its record date for bonus shares. Earlier, the stock was scheduled to turn ex-bonus on May 27, however, that has changed to May 29. Veljan has seen positive double-digit growth throughout 2024 so far, and in six months, the stock doubled investors' returns. Also, the stock is scheduled to Rs 17 dividend per share.
Veljan Denison Share Price:
Last week, on Friday, the stock ended marginally up to Rs 3789.05 apiece on BSE with a market cap of Rs 852.54 crore. The stock's 52-week high and low is at Rs 4,200 and Rs 1,230.05 apiece respectively.
YTD, the stock is up by 93%, while in six months the stock rallied by 110%. It was merely at the Rs 1,803 level six months ago.
Veljan Denison Bonus Issue:
In its regulatory filing, Veljan said, "the record date fixed to determine the shareholders and their entitlement for issue and allotment of Bonus Shares in the ratio of 1:1 i.e., 1 (One) new fully paid-up equity share of Rs. 10/- each for every 1 (One) existing fully paid-up equity share of Rs. 10/- each held by them is changed from Monday, May 27, 2024, to Wednesday, May 29, 2024."
Accordingly, the record date has been revised to May 29. The bonus issue ratio is 1:1.
Further, Veljan said, the Bonus Shares shall be allotted to the equity shareholders whose names appear in the Register of Members/ List of Beneficial Owners provided by the Depositories as of the said date.
Veljan Denison Dividend:
In its board meeting earlier this week, the company recommended a dividend of Rs. 17/- per equity share (i.e. 170%) of Rs. 10/- each on the present issued capital of Rs. 2.25 crores for the financial year ended on March 31, 2024.
This dividend payout is the highest by the company and will come after the Rs 13 per share dividend each that was paid in FY23 and FY22 respectively.
As per Trendlyne data, the stock has delivered up to 24 dividends since February 2002. It has a dividend yield of 0.34% on the current market price.
Among its key fundamentals, Trendlyne data pointed out that:
- Stock Price rose 187.47% and outperformed its sector by 112.73% 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.
- Promoter Share Holding stayed the same in the most recent quarter at 74.98%.
- Promoter Pledges are zero.
- Return on Equity(ROE) for the last financial year was 10.77%, in the normal range of 10% to 20%.
- Interest Coverage Ratio is 35.22, higher than 1.5. This means that it can meet its interest payments comfortably with its earnings (EBIT).
- However, the Price to Earning Ratio is 38.84, higher than its sector PE ratio of 34.8.
About Veljan Denison:
Veljan has a wealth of experience in developing and manufacturing a wide range of Pneumatic and Hydraulic products, components and systems for over five decades now at its various manufacturing plants located in and near Hyderabad, India. These plants are manned with modern, advanced and flexible manufacturing facilities and systems which are supported by young and skilled human resources.
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