1:2 Split: Engineering Stock Price Halves As Shares Trade Ex-Split, Shares Hit 52-Week High

Small cap company engaged in engineering sector, Elecon Engineering Company shares today hit both 52-week low and 52-week high as share traded ex-split. The stock price is nearly halved after shares traded ex-split in the ratio of 1:2. The company on July 4, 2024 fixed the record date for 1:2 stock split as July 19, 2024. Current market price of Elecon Engineering Company share on BSE is Rs 674.00 per share with gain of 5.23%. Elecon Engineering Company share price on July 4, 2024 was Rs 1343.85 per share, the day it fixed record date for split. Elecon Engineering shares offered attractive return of 43% year-to-date and zoomed 306% in last 2-years. The market capitalisation of Elecon Engineering stood at Rs 15,029.19 crore. Check details below:

What Is Stock Split And How It Helps? When a company announces stock split, it leads to increased number of shares of that company with the market cap remaining same. The current shares split with the underlying value remaining similar. When the number of shares rise, the price per share declines. The companies go for stock split to make the share more affordable for investors who may find it difficult to buy the shares of that company due to high prices.

Elecon Engineering Share Trade Ex Split: According to the BSE filing of the company issued as on July 4, 2024, "the Company has fixed Friday, 19th July, 2024 as the "Record Date" for determining entitlement of Equity Shareholders for the purpose of sub-division/ split of existing Equity Shares of the Company, such that 1 (one) equity share having face value of Rs. 2/ - (Rupees two only) each, fully paid-up, will be sub-divided into 2 (two) equity shares having face value of Re. 1/- (Rupee one only) each, fully paid-up, ranking pari-passu in all respects which was approved by the Equity Shareholders at the 64th Annual General Meeting held on 25th June, 2024."
Elecon Engineering on April 19, 2024 approved sub-division of the equity shares of face value of Rs. 2.00 /- each into 2 equity shares of the face value of Rs. 1.00/- each."

Elecon Engineering Share Performance: 52-week high price of Elecon Engineering Company share on BSE is Rs 715.00 per share (as on 19/07/2024) and 52-week low price is Rs 346.68 per share (22/09/2023), respectively. The PE of Elecon Engineering Company stood at 48.34 and ROE at 22.07. Elecon Engineering Company shares delivered eye-catching returns of 23% in last 6-months, rose 868% in 3-years, and offered stunning gains of 3323% in last 5-years.

Elecon Engineering Company Dividend: The exchange filing of the company issued on April 19, 2024 announced, "The Board of Directors has recommended Final Dividend of Rs. 2.00/- (i.e. 100%) per Equity Share of Rs. 2.00/- each for the financial year 2023-24." Shares hit ex-date on June 14, 2024.

Elecon Engineering Company Financial Results: The consolidated net profit of the company zoomed 52.56% to Rs 103.65 crore for Q4 FY 2024 as against Rs 68 crore declared in the corresponding quarter of last year (Q4FY23). The revenue for the Q4 FY24 declared at Rs 565 crore, up 33.0% as against Rs 425 crore declared in the similar quarter of last year.

Profit before tax surged 62.01% to Rs 136.24 crore for the quarter under review as compared to Rs Rs 84.09 crore announced in the similar quarter last year.

The company's EBITDA jumped 45.8% YoY to Rs 135 crore, up 45.8% as against Rs 93 crore declared in the similar quarter of last year. EBITDA margin improved by 210 basis points YoY basis to 24%.

Bonus Share History: Elecon Engineering Company offered 1 bonus issue since October 10, 2007. Its last bonus issue was declared in the ratio 2:1 with ex-date fixed as October 10, 2007.

Disclaimer:

The stock highlights the stock split and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.