Allotment of 1:1 Bonus Shares Announced: Bet On The Specialty Chemical Stock?

In the chemical industry, Grauer & Weil (India) Ltd. is a small-cap company. The firm has been providing excellent products such as hydraulic oil, gear oil, chain oil, coolant oil, and wire drawing Oil since 1957. Growel, also known as Grauer & Weil (India) Ltd., has been a dominant force in the engineering equipment and electroplating and specialty chemical industries, setting new standards for the general metal finishing industry. The firm has been producing hydraulic oil, gear oil, coolant oil, chain oil, wire drawing oil, and numerous other products for over 66 years.

Grauer & Weil (India) Bonus Shares

"Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors of the Company vide its meeting held on 26th February, 2024 approved the issue and allotment of Bonus Shares in the proportion of 1:1 [One (1) new equity share of Re. 1/- (One) each for every One (1) existing equity share(s) of Re. 1/- (One) each held as on the Record Date] i.e. 22,67,05,750 (Twenty two Crore Sixty Seven Lacs Five thousand Seven Hundred and fifty) equity shares of Re. 1/- (One) each as fully paid up bonus shares," said the company in a regulatory filing.

The bonus shares, subject to approval of the shareholders, will be issued out of the free reserve and/or any other permitted reserves/surplus of Grauer & Weil (India). Within 2 months from the date of Board approval, subject to completion of the rest of the formalities and approvals as and when required is the estimated date by which such bonus shares would be credited or dispatched according to Grauer & Weil (India).

Grauer and Weil Financials

The company reported a net sales of Rs 285.03 crore in the December 2023 quarter up 13.61% from Rs. 250.89 crore in the December 2022 quarter. Its net profit stood at Rs. 42.75 crore in Q3FY24 up 24.13% from Rs. 34.44 crore in Q3FY23. EBITDA reached Rs. 63.92 crore in the reporting quarter up 22.19% from Rs. 52.31 crore in the same quarter of the previous financial year.

Grauer and Weil Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said GRAUWEIL, currently trading at Rs 115.60, is showing signs of a potential buying opportunity, supported by the 200-day Exponential Moving Average (EMA), indicating a robust underlying trend. The stock has demonstrated significant support levels near Rs 112.50 and Rs 109, providing a solid foundation for potential price appreciation.

Technical indicators further support a positive outlook for GRAUWEIL. The Relative Strength Index (RSI) is at 35, suggesting that the stock is not yet overbought, potentially indicating further room for upside movement. This aligns with the view that buying near the current support levels could lead to a profitable trade.

Traders and investors looking to capitalize on this opportunity may consider entering long positions near the support levels, with target prices set at Rs 123 and Rs 135. These targets are based on the potential for GRAUWEIL to continue its upward trajectory, supported by the current technical setup.

To manage risk effectively, it is advisable to implement a stop-loss (SL) strategy. A suggested SL level is placed at Rs 107, providing a buffer against potential downside risk and helping to protect gains in case of a market reversal.
In conclusion, GRAUWEIL presents a compelling buying opportunity, supported by strong technical indicators and significant support levels. However, investors should exercise caution and implement risk management strategies, such as setting a stop-loss, to protect their investments and maximize potential returns.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.