1:1 Bonus Issue, Last Of 2024; December 30 Record Date; Good Time To Buy Auto Stock To Be Eligible?

Banco Products, an auto components and equipment maker, is going to launch the last bonus issue of 2024. The company's 1:1 bonus ratio has a record date of December 30. Banco Products is currently near its 52-week high and has jumped by nearly 68% year-to-date. The stock becomes a multi-bagger with gains of up to 923% in 5 years. BANCO has a BUY recommendation.

BANCO Products Share Price:

Last week, on Friday, the stock ended at Rs 1057 apiece on BSE, up by 5.81% on BSE, with market cap at Rs 7,559.52 crore. The stock is near its 52-week high of Rs 1,189.60 apiece, while more than doubled from its 52-week low of Rs 505.35 apiece.

The stock's fundamentals are broadly positive. As per Trendlyne data, its Price to Earning Ratio is 21.97, lower than its sector PE ratio of 33.32; Stock Price rose 65.57% and outperformed its sector by 37.08% in the past year; Debt to Equity Ratio of 0.21 is less than 1 and healthy, which implies that its assets are financed mainly through equity. Also, the Return on Equity(ROE) for the last financial year was 25.82%, more than 20% in the last financial year, indicating an efficient use of shareholder's capital to generate profit.

Further, Trendlyne data pointed out that Mutual Fund Holding increased by 0.04% in the last quarter to 0.11; while Promoter Share Holding stayed the same in the most recent quarter at 67.88%; and the Interest Coverage Ratio is 21.54, higher than 1.5, which means that it is able to meet its interest payments comfortably with its earnings (EBIT).

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.

BUY BANCO Products?

As per Markets Mojo, the stock is currently part of the MomentumNow Stocks on MarketsMOJO, a designation it has held since November 14, 2024. In terms of moving averages, Banco Products is performing well, exceeding the 5-day, 50-day, 100-day, and 200-day moving averages, although it remains slightly below the 20-day moving average. 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.