1st Ever 1:1 Bonus Shares: Ex-Date In 3 Days On 2nd May; Buy The Stock To Be Eligible?

As of Monday's closing session, Nidhi Granites, a small-cap company in the construction industry, has a market capitalization of Rs 112.44 Cr. Nidhi Granites' shares ended at a record high of Rs 281.10 a share on Monday, representing a 5% upper circuit level. According to data available on the BSE, the stock price hike was observed prior to the stock trading ex-bonus on 2nd May for a 1:1 ratio. The record date falls on the same day because of the T+1 settlement method, thus the corporation will be determining which shareholders are eligible to receive bonus equity shares of the company.

Nidhi Granites Bonus Shares Record Date

During their meeting on March 15, 2024, the Board of Directors decided to issue bonus equity shares in the ratio of 1:1 which means that the company is going to issue 1 new equity share for every 1 share held at a face value of Rs 10 by shareholders as of the record date, which had been scheduled for Thursday, May 2, 2024. This record date will be used to determine which shareholders are eligible to receive bonus equity shares from the company.

Nidhi Granites Financials

From Rs 0.12 crore in the quarter that ended in December 2022 to Rs 0.45 crore in the quarter that ended in December 2023, Nidhi Granites' net profit jumped by 275.00%. In comparison to the quarter ending in December 2022, sales for the quarter ending in December 2023 climbed by 55.62% to Rs 10.66 crore from Rs 6.85 crore. Its EBIT climbed from Rs 0.22 Cr in Q3FY23 to Rs 0.69 Cr in Q3FY24. For the quarter that ended on March 31, 2024, Nidhi Granites has not yet released its financial results.

Nidhi Granites Share Price Target

"Nidhi Granites Limited is an Indian company operating in the Granites and Marbles sector and is classified as a Smallcap stock with 107 units. Recently, the company has come into the news following the declaration of an issue of 1:1 Bonus Issue of Equity Shares. Following this bonus issue, individuals can expect a reduction in their average cost and an increase in the return percentage. Notably, the stock has offered a return of 256.52% in a year, making it lucrative for some. However, the stock has a PE of 167.34, which is much higher than the sector PE of 18.78. While the view is bullish on this one, the stock is currently in the overbought zone. Hence, I recommend investing with limited exposure. Those willing to ride the high risk-reward aspect of this stock can buy it at the Rs. 230-290 range, for a targeted range of Rs. 350-500. I recommended holding this stock for 5-40 days and setting the stop loss at Rs. 200 to avoid loss," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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