2:1 Bonus Ahead: BSE Smallcap With 25.10% ROE, Sets 1st Ever Bonus Record Date; 138% Returns Given, BUY Still?

A BSE Smallcap stock that is trading around the Rs 1,565 level currently is going to be in focus ahead. This is because the company has declared its first-ever bonus issue and fixed the record date accordingly. The company is engaged in healthcare services. On BSE alone, this stock gained by a whopping 70% year-to-date.

Who is it?

This stock is called Thyrocare Technologies and it has shown consistent bullish trend on weekly, monthly, six-monthly,and year-to-date basis. Although November 19 was sour for Thyrocare.

Thyrocare Technologies Share Price:

After the market hours of November 19, Thyrocare Technologies share price closed at Rs 1564.85 apiece, down by 1.67% on BSE, with market cap of Rs 8,302.14 crore.

The stock has a price-to-equity ratio (PE) of 68.97x and return on equity (ROE) of 25.10%. Its highest price level is of Rs 1,613.90 which is its 52-week high and lowest price level in 52 weeks is Rs 658 apiece.

Taking into consideration its 1-year low, Thyrocare has skyrocketed by nearly 138%. Also, the stock is closer to its 52-week high. In past five sessions, the stock gained by 10.04%, while month-on-month performance was positive with 26.13% gains. Its six-monthly performance is up by 62%. YTD, the stock rallied by 70% on BSE.

Thyrocare Technologies Bonus Issue:

Thyrocare has fixed Friday, November 28, as the record date for determining the eligibility of shareholders for issuance and allotment of bonus shares. The bonus shares is in the ratio of 2:1.

The 2:1 ratio means that it will reward two free shares as bonus on existing 1 equity share to eligible shareholders. The face value is at Rs 10 each.

Thyrocare Technologies Share Price Recommendation:

The consensus recommendation from 2 analysts for Thyrocare Technologies Ltd. is STRONG BUY, as per Trendlyne data. However, the average 1-year target price is at Rs 1520 apiece, which signals nearly 3% potential drop ahead.

Thyrocare has surpassed target price of Rs 1,560 set by ICICI Direct. Last month, the analysts here said, "Going ahead, Thyrocare is looking to add new franchisee (100-150 per month) and partners to boost volume growth while it is also gearing to benefit from tailwinds related to cut in GST rates on diagnostics test, CGHS rate revision, and test packages for GLP-1 patients."

About Thyrocare Technologies Ltd:

Thyrocare Technologies Limited is India's first and foremost advanced fully automated laboratory with a strong presence in over 2000 cities/towns, both nationally and internationally.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.