1:1 Bonus Shares Declared: Record Date Will Be Intimated Soon; BUY/SELL?

Engine cooling and sealing systems for industrial and automotive applications are the areas of business for Banco Products (India) Limited. Along with bonus shares of 1:1, the firm has announced its financial results for the quarter that ended on September 30, 2024. Banco Products (India)'s stock wrapped up Monday 17.95% higher at Rs 990.80 a share, with a market value of Rs 7,086.07 Cr.

Banco Products Bonus Shares

The Board of Directors have considered and approved "issue of bonus shares in the ratio of 1:1 i.e. 1 (One) new fully paid-up equity share of Rs 2/- (Rupees Two Only) each for every 1 (One) existing fully paid-up equity share of Rs 2/- (Rupees Two Only) each, to, the eligible equity shareholders of the Company as on the record date, by capitalization of securities premium received in cash and/or general reserve and/or retained earnings. The record date will be intimated separately by the Company," said Banco Products in a stock exchange filing.

The pre-bonus issue paid-up share capital is 7,15,18,650 equity shares of Rs. 2 each aggregating Rs. 14.30 Crore while the post-bonus issue paid-up share capital is 14,30,37,300 equity shares of Rs. 2 each aggregating Rs. 28.61 Crore.

The estimated date by which such bonus shares will be credited or dispatched is on or before 12th January 2025 according to Banco Products.

Banco Products Financials

Banco Products' second quarter (Q2FY25), which ended in September 2024, had a more than twofold rise in net profit, reaching Rs 138.70 crore. In the same quarter last year, the company reported a net profit of Rs 66.11 crore. In Q2FY25, the net revenue was Rs 888.81 crore up from Rs 717.91 crore in Q2FY24. Total expenses climbed 14.5% to Rs 689.21 crore in Q2 FY25 over Q2 FY24 whilst Profit before tax remained at Rs 197.09 crore in Q2FY25.

Banco Products Share Price Target

"Banco Products stock price is bullish but also overbought on the Daily charts with strong resistance at 916. Investors should be booking profits as a Daily close below support of 853 could lead to a target of 771 in the near term," said A R Ramachandran, Independent Research Analyst.

Disclaimer

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