Surya Roshni, an iron and steel products maker, has been rewarding consistently its investors over the past two years. The year 2025 is packed with yet another gift from Surya Roshni to its shareholders. The company is going to offer its bonus shares of 1:1 ratio, which is the first bonus for 2025 by a listed company. Surya stock is trading near Rs 600 levels.
Surya Roshni Share Price:
Last week, on December 27, Surya Roshni stock ended at Rs 569.80 apiece, up by 1.40% on BSE with a market cap of Rs 6,200.45 crore. The stock's 52-week high and low are at Rs 841.50 apiece and Rs 467.15 apiece respectively.
In the trading week that ended on December 27th, the stock's weekly performance was up by 1.2% on BSE. Year-to-date, however, the stock has slipped by nearly 29% on BSE. In a year, the performance is down by 27%.
Surya Roshni Bonus Issue:
The iron and steel player has fixed Wednesday, January 01, 2025, as the "Record Date" to determine the eligibility of shareholders for issuance of the said Bonus Shares.
The bonus issue is in the ratio of 1:1, meaning the stock will reward 1 free share on existing on 1 piece. The company proposed an allotment of 10,88,17,948 Equity shares of Rs 5/- each as bonus shares in the ratio.
The deemed date of allotment is Thursday, January 2, 2025, while the record date is January 3.
Earlier, in a years span, Surya Roshni delivered three dividends and a stock split.
Dividends:
The company paid about one interim dividend of Rs 2.50 each for FY25 and its record date was on November 29, 2024. It delivered interim and final dividends of Rs 2.50 each with record dates in November 2023 and August 2024. Together, the three dividends are worth Rs 7.50 per share.
Stock Split:
The company has split its shares in the ratio of 1:2 with an effective date on October 6, 2023. The face value of Rs 10 each is split to Rs 5 each.
Surya Roshni Recommendation:
As per the Trendlyne data, the consensus recommendation from 1 analyst for Surya Roshni Ltd. is HOLD. EPS is expected to grow by 2.6% in FY25. The average target price for 1-year is Rs 603, hinting at potential 6% upside ahead.
As per IDBI Capital's latest report, in Q2FY25, revenue declined by 20.2% YoY to Rs15.3bn, primarily due to weak performance in Steel pipes segment, while Lighting and consumer durable (LCD) segment posted decent growth (up 5% YoY). Steel pipes segment's EBITDA/t fell by 43% YoY to Rs2,901, driven by an inventory loss of Rs3,000/t. However, management aims to sustain EBITDA/t of Rs5,000-5,200 for FY25 and targets Rs5,200-5,500 for FY26. Surya commenced operations at the Bahadurgarh facility in Jul'24 and expects spiral pipes plant at Gwalior to start by Dec'24. Additionally, Anjar facility for large diameter pipe and Hindupur facility are expected to start within next 12 months.
It lastly said, "We cut FY25E EBITDA estimate by 14% to arrive at a target price of Rs603 (earlier Rs604) based on SOTP method. We maintain our HOLD rating on the stock."
About Surya Roshni:
Surya Roshni started in 1973 with making Steel Tubes and has grown by leaps and bounds to become one of the largest Steel Pipes and Lighting companies in India. With sales of Rs 7,997 crores in FY 2023-24, Surya Roshni is one of the largest conglomerates in India, with exports to over 50 countries around the world. The Surya and Prakash Surya brands stand for quality, innovation and the latest technology.
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