Vijay Kedia & Dolly Khanna Stock Sets Record For 1:5 Stock Split: Do You Own?

The consumer discretionary sector is where Talbros Automotive Components Ltd, a small-cap company, operates. The multibagger stock, which has shot up 139% in a year, is in the spotlight as the company's board of directors set a record date for a 1:5 stock split.

"This is to inform you that pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, the Board of Directors fixed Friday, 27th October, 2023 as the "Record Date" for determining entitlement of Equity Shareholders for the purpose of Sub-division/Split of existing Equity Shares of the Company from 1 (One) Equity Share having face value of Rs. 10/- (Rupees Ten only) each fully paid-up, into 5 (Five) Equity Shares having face value of Rs. 2/- (Rupees Two only) each fully paid-up, as approved by the Equity Shareholders at the 66th AGM held on 25th September, 2023," said Talbros Automotive Components in a stock exchange filing.

"To enhance trading activity and liquidity of the Company's equity shares, to encourage participation of small investors by making equity shares of the Company more attractive to invest due to increased volume on account of larger free float and lowered price per share," said the company in a regulatory filing as a rationale behind the stock split.

The auto component maker increased its consolidated net profit by 46.34 per cent, from Rs 11.9 crore in Q1FY23 to Rs 17.4 crore in Q1FY24. Its net income increased by 20% YoY to Rs 185.3 crore in the quarter that ended in June 2023 from Rs 154.67 crore in the same quarter the year before.

On Friday, the shares of Talbros Automotive Components opened on the BSE at Rs 1069.95 apiece and were trading at Rs 1050 while writing this copy up by 13.35 points or by 1.29%. The stock reached a 52-week-high of Rs 1,162.95 on (11/08/2023) and a 52-week-low of Rs 380.10 on (29/03/2023), indicating that at the current market price, the stock is trading 9.71% below the 1 year high and 176.24% above the 1 year low.

According to Screener statistics, the company's promoters held 58.42% of the company's shares in the first quarter of FY24, DIIs held 0.02%, and the public held 41.57%. Dolly Khanna, a renowned investor, held 1,85,715 shares of Talbros Automotive Components in his portfolio during the April to June 2023 quarter, representing 1.50% of the company's total paid-up capital while Vijay Kedia's portfolio showed holding 1,50,000 shares, or 1.22% stake in the company, according to BSE data.