2 Debt-Free Stocks To Trade Ex-Split Next Week: Do You Own Any?

A stock split is an action through which a company divides its current shares into multiple shares with the intention of enhancing liquidity and lowering the cost of the shares; as a result, the total market value of the firm stays constant but the number of outstanding shares increases. According to the data of Trendlyne, Hardwyn and Radhagobind Commercial are the two debt-free corporations. The firms have announced a stock split for its eligible shareholders, and the stocks are going to trade ex-split next week.

Hardwyn India

Small-cap firm Hardwyn India operates in the commercial services sector. Among Indian makers of architectural equipment, Hardwyn is a well-known brand. On June 5th, the shares will become ex-date for its bonus shares and stock split. In addition to soaring to its 20% upper circuit before the ex-split and ex-bonus, the stock also set a new 52-week high on Friday in the closing session. Hardwyn announced a bonus issue in the ratio of 1:3 and a stock split in the ratio of 1:10 last month.

In other words, for every three existing equity shares held in their Demat account, the corporation will issue one bonus equity share at a face value of Rs 1 to eligible shareholders. The company's existing 1 equity share having a face value of Rs. 10 per share, will be split into ten equity shares, each of which would have a Rs. 1 face value post the stock split. June 5, 2023 has been set as the record date for determining eligible shareholders for the 10:1 stock split and 1:3 bonus issue.

The company reported a net profit of Rs 3.73 crore in Q4FY23, rising 125% YoY but quarterly sales, however, fell by 11% YoY to Rs 29.88 crore. Ultimately, the company's net profit jumped by 165% to Rs 9.03 crore in FY23 from Rs 3.41 crore the year before.
On Friday, the shares of Hardwyn India opened on the BSE at Rs 528.95 and went to hit an all-time high of Rs 623.85 apiece during afternoon deals logging in an upside gain of 19.90% at the upper circuit level. The stock touched a 52-week-high of Rs 623.85 on (02/06/2023) and a 52-week-low of Rs 138.74 on (16/06/2022). During Q4FY23, the company recorded promoters shareholding of 43.77%, FIIs stake of 0.53% and public stake of 55.71%.

Radhagobind Commercial

Radhagobind Commercial is a micro-cap company that deals in the consumer discretionary sector. Trading in fabrics is the company's core business activity. Trading in textile products and related operations in India is the company's main area of business. The board of directors has approved stock subdivision in 1:10 ratio and in order to determine the eligibility of the shareholders for the purpose of stock split, the company has fixed 8th June 2023 as the record date and the stock is going to trade ex-split on the same day due to India's T+1 settlement.

On Friday, the shares of Radhagobind Commercial opened on the BSE at Rs 29.39 apiece and went on to close at a lower circuit band of Rs 26.97 logging a downside gap of 4.97%. The stock touched a 52-week-high of Rs 36.75 (28/11/2022) and a 52-week-low of Rs 18.05 (18/08/2022), indicating that at the current market price, the stock is trading 26.61% below the 1-year high and 49.41% above the 1 year low.