1:1 Bonus Issue: Multibagger Stock Hits New 1-Year High; Shares Double Rs 1 lakh Investment In 6 Months

Paint stock, Kamdhenu Ventures witnessed stellar buying on Monday ahead of turning ex-bonus on August 1 for its bonus equity shares in the ratio of 1:1. The stock rallied by more than 9% on BSE to hit a fresh 52-week high. But that's not all, Kamdheni is among the latest entrant on exchanges. And in a span of six months, the stock has doubled Rs 1 lakh investment by rising over 100%.

As per the regulatory filing, Kamdhenu Ventures fixed August 1 as the record date to determine the eligibility of the shareholders entitled to issuance and allotment of bonus equity shares.

The bonus issue ratio of 1:1 means that the company will issue one bonus equity share having a face value of Rs 5 each, for every one equity share held by the equity shareholders as of the record date.

Hence, the stock will trade ex-bonus on August 1 as well.

Bonus shares are issued in a certain proportion by a listed company to existing shareholders. There is no need to pay any money for these shares. Also, new equity shares are issued at the existing Face Value of equity shares of the Company. Thereby, face value remains the same post-bonus issue.

The stock has performed robustly on exchanges. On BSE, the stock's gain is over 12% in 5 trading sessions, while monthly upside is to the tune of 29%.

But Kamdhenu Ventures is a multibagger in just six months. Its half-yearly gains are 100.70% on BSE as of now. Year-to-date, the upside is nearly 94%.

Using Axis Direct Calculator, if investors purchased the stock six months ago (January 31) with an investment of Rs 1 lakh. Their lump sum value has risen to Rs 2,01,626. This is far better than the returns of 11.4% provided by Sensex in 6 months.

Kamdhenu debuted on the stock exchanges BSE and NSE on July 24, 2023.

Apart from the bonus issue, Kamdhenu Ventures will also be in focus for its financial earnings report for the quarter ending June 30, 2023, on August 2, 2023.

Kamdhenu Paints is among the leading brands in the Indian decorative paints segment. Kamdhenu's sales are more concentrated in North & East India owing to a denser older dealer base in the region. Notably, 70% of India's urban population resides in Tier II & III cities, where the majority of Kamdhenu.

FY23 revenue of the company is at Rs 259.5 crore, however, it posted a net loss of Rs 11.3 crore in the fiscal.

In its investor presentation on May 20, 2023, Kamdhenu said penetration can be easily tripled in 5 years through new dealers across regions. Further, it said that a better understanding of various mini-markets, presence in all key states and strong track record with existing dealers will drive the next phase of dealer addition.