Auto Stock To Mull Bonus Shares This Week On 23rd March; Bet On The 52W-High Stock?

As of Wednesday's closing session, Veljan Denison Limited, a small-cap company in the automobile industry, has a market valuation of Rs 718.22 Cr. For more than 50 years, the company has been developing and mass-producing a broad variety of pneumatic and hydraulic systems, components, and products at its several manufacturing facilities in and around Hyderabad. With its extensive experience, Veljan can offer comprehensive solutions for every application, including those in the shipbuilding, energy, mobile, and industrial areas. Veljan Denison, a Veljan's group company, produces custom-built power systems and manifold blocks in addition to pumps, motors, and valves. In yesterday's session, the stock reached a record high of Rs 3,350 apiece and ended 11.42% higher at Rs 3192.10 on the BSE after the company announced that its Board of Directors will meet on Saturday, March 23, 2024 to consider issuing bonus shares.

Veljan Denison Bonus Shares

"In compliance with the provisions of Regulation 29(1) of SEBI (LODR) Regulations, 2015 as amended from time to time, we wish to inform that a meeting of the Board of Directors of the Company is scheduled to be held on Saturday, March 23, 2024 to consider, inter-alia the proposal for issue of Bonus Shares to the equity shareholders of the Company. And also in compliance of the provisions of SEBI (Prohibition of Insider Trading) (Amendment) Regulations, 2018, the "Trading Window" for purchasing / selling or dealing in the securities of the Company shall remain closed for all the Designated Persons and their immediate relatives including Insiders of the Company from Monday, March 18, 2024 and shall be opened forty eight hours after the conclusion of the aforesaid meeting of the Board of Directors," said Veljan Denison in a regulatory filing.

Veljan Denison Financials

The firm had net sales of Rs. 35.02 crore on a consolidated basis in the December 2023 quarter, up 14.9% from Rs. 30.48 crore in the same period of 2022. In Q3FY24, its net profit for the quarter was Rs. 5.63 crore, a 45.29% rise compared to Rs. 3.88 crore in Q3FY23. EBITDA climbed 29.05% from Rs. 7.16 crore in the same quarter of the previous fiscal year to Rs. 9.24 crore in the most recent quarter.

Veljan Denison Share Price Target

Veljan Denison is bullish but also very overbought with next resistance at 2900 on the Daily charts. Investors should book profits at current levels as Daily close below support of 2650 could lead to a target of 2100 in the near term, said AR Ramachandran from Tips2trades.

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.