Multibagger Auto-ancillaries Stock Announces 1:2 Bonus Share Issue: Check Details

Updated: Wednesday, August 24, 2022, 19:13 [IST]

Auto ancillaries stock- Bharat Gears that has been in news lately due to its likely consideration of bonus share in today's board meet has considered and approved the bonus share issue. So, if you own the scrip or are interested in it, here are the finer details on the bonus share issue and other relevant details.

Bonus share announcement in the ratio of 1:2-

The company in the exchange filing said, "the Board of Directors of the Company, in its Meeting held on Wednesday, August 24,2022, inter alia, considered and approved the issue of Bonus shares to the members of the company by way of capitalization of reserves in the ratio of 1:2 i.e. issue of 1 Equity Share for every 2 Equity Shares held by the members whose names appear in the Register of Members or as the beneficial owner(s)of the Equity shares of the company, in the records of the Depositories, on the close of business-on the Record Date being September 13, 2022, subject to the members of the Company in the ensuing Annual General Meeting.

Accordingly, the bonus share issue is recommended in the proportion of 1:2 and the record date to determine the eligibility of shareholders for the said bonus is September 13, 2022.

Bonus shares credit date

The company with regard to the credit of bonus shares said, it shall be done within 2 months from the date of approval by the Board of Directors on August 24, 2022 subject to shareholders' approval.

Fundamentals and financials of the company

The company is trading at cheap valuations with PE less than 10. RoE of the stock is also decent at over 23%. On financial parameters, the company's revenue has inched higher since Fy20 and in the last ended fiscal year 2022, the company's revenue was placed at Rs. 736.57 crore. Also, the company's net income turned positive to Rs. 25.84 crore as compared to negative figures for the preceding 2 fiscal years.

The company's EPS also registered good growth annually zooming from Rs.7.24 in Fy2018 to Rs. 26.43.

In the June ended quarter of Fy23, the company's income from operations logged a sequential decline to Rs. 183.97 crore versus Rs. 190.69 crore in the March ended quarter. Net profit at the concern has also deteriorated both sequentially as well as YoY to Rs. 4.30 crore.

Company profile

Bharat Gears is a small cap entity with a m-cap of Rs. 185 crore. The company is a gear manufacturing company. Also it is engaged in offering automotive gears and components. The company's peers include Samvardhana Motherson, Bosch, Schaeffler India etc.