1:10 Share Split: Record Date On 2nd May 2024; Bet On The Agrochemical Stock Before Ex-Split Date?

As of Monday's closing session, Bhagiradha Chemicals & Industries Ltd, a small cap company in the agrochemical industry, has a market valuation of Rs 2,029.54 Cr. With 2,155 shares exchanged, the pesticide company's shares closed the day 1.29% higher at Rs 1950.45 a share. The stock has gone up 30% year to date (YTD) in 2024, and the bullish rise in the stock is evident following the Board of Directors' announcement that Thursday, May 02, 2024, will serve as the record date for the 1:10 stock split.

Bhagiradha Chemicals & Industries Stock Split

For the purpose of sub-division/ split of existing equity shares of the company, such that 1 (one) equity share having face value of Rs. 10/- (Rupees ten only) each, fully paid-up, be sub-divided/split into 10 (Ten) equity shares having face value of Re.1 /- (Rupee One Only) each, the Board of Directors have fixed Thursday, May 02, 2024 as the record date.

Bhagiradha Chemicals & Industries Financials

Compared to Rs 126.50 in the December 2022 quarter, the company's consolidated net income for the quarter ending December 2023 was Rs 75.13 Cr. During the reporting quarter, its net expenses were Rs 68.78 Cr, compared to Rs 109.15 Cr during the same period in FY23. Comparing Q3FY24 to Q3FY23, its consolidated EBIT was Rs 6.35 Cr as opposed to Rs 17.34 Cr. In a regulatory filing, Bhagiradha Chemicals and Industries said that compared to Q3FY23's Rs 11.65 Cr, its quarterly net profit for Q3FY24 was Rs 3.32 Cr. Bhagiradha Chemicals & Industries will shortly declare its financial results for the quarter and year ended 31st March 2024.

Bhagiradha Chemicals & Industries Share Price Target

"Bhagiradha Chemicals & Industries is an Indian agrochemical company that manufactures agrochemical active constituents in insecticides, fungicides, and weedicides. This Small Cap stock with 2,006 units is currently in the news because of its upcoming 1:10 share split, which is expected to change its Face Value from 10 to 1. The stock also offered a return of 38.47%, and declared a dividend yield of 0.21% against a sector yield of 1.15%, drawing the attention of some individuals. However, the stock's current PE ratio stands at 98.42 against the sector PE Ratio of 28.93, underscoring its overvaluation. While the views are bullish on this stock, it is currently in the overbought zone. This is why I advise investing in this in part to limit exposure. Individuals willing to enter this stock can consider buying at the Rs. 1870-1950 in parts to chase a target of Rs. 210-2500. They may hold it for a period of 20 to 180 days while maintaining their stop loss at Rs. 1710," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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