1:1 Bonus Issue, December 30th Record Date; Auto Stock Rallied 10% In 1-Day; BUY To Be Eligible?

Banco Products (India), a small company engaged in the business of auto components & equipment, is trending on a bullish tone. On December 24th, Banco Products witnessed a Santa Rally! The stock gained by a whopping 10% in a single day and even crossed the Rs 1,050 mark. The stock is now nearing its 52-week high of Rs 1,189.60 apiece. The latest upside comes after BANCO Products fixed the record date for its upcoming bonus issue.

Banco Products Bonus Issue:

The auto player has fixed Monday, 30th December 2024 as the Record Date for the purpose of determining the equity shareholders of the Company eligible for bonus equity shares of the Company. The company has announced bonus shares with a 1:1 ratio, meaning it will reward investors with 1 free share on the existing 1 piece.

The bonus issue comes after interim dividend payout of whopping Rs 20 per share whose record date was on February 16, 2024.

Banco Products Share Price:

Right after the record date announcement for bonus shares during the weekend, Banco Products stock buzzed this week. On Tuesday, ahead of Christmas, Banco Products jumped nearly 10% to hit an intraday high of Rs 1060.65 apiece, which is near its 52-week high of Rs 1,189.60 apiece.

The stock has more than doubled from its 52-week low of Rs 505.35 apiece. After market hours of December 24th, the stock ended at Rs 1053.55 apiece, up by 9.3% on BSE with a market cap of Rs 7,534.85 crore.

As per BSE data, the price-to-equity ratio is at 41.90x Banco Products currently, while the return on equity is stable at 24.23%. YTD, the stock zoomed by 67.4% on BSE so far.

BUY Banco Products Share?

As per the Markets Mojo report, currently, Banco Products is positioned above the 50-day, 100-day, and 200-day moving averages, although it remains below the 5-day and 20-day moving averages. The recommendation is BUY.

About Banco Products:

Born of entrepreneurial spirit in 1961, Banco Products (India) Ltd. has today carved a niche for itself as a leader in the business of engine cooling and sealing systems both for automotive and industrial applications. The product range for engine cooling systems includes Radiators, Charge air coolers, Oil coolers - Transmission & hydraulic, Fuel coolers, Battery coolers, Inverter coolers, in Aluminium and copper/brass configurations and accessories expansion tanks, Fan motor assembly, Fan shroud and guard and miscellaneous mounting and plumbing accessories.

Banco is a preferred choice of OEM both in India and abroad as a design and manufacturing partner where all the facilities are housed under one roof providing a seamless flow of activities from idea to implementation. This USP of Banco helps customers realize products in a shorter time without sacrificing the stringent processes both in the development of new parts and serial production, as per the website.