10x Shares, 0x Confidence? Small Cap’s 1:10 Split Plans Clash With Bearish Charts; Buy?

A division of the multinational Vesuvius Group, Vesuvius India Limited (VIL) is a pioneer in metal flow engineering with a focus on refractory products and solutions for the foundry and steel sectors. A multinational corporation, Vesuvius is well-known in the steel and foundry sectors and provides a variety of products and services, such as operations management, engineering, and design. A variety of items are available from Vesuvius India, such as digital measurement equipment, unshaped refractories like castables and taphole clay, and shaped refractories like shrouds, stoppers, and nozzles. Vesuvius India serves both local and foreign markets and operates throughout India. On Monday, the shares of Vesuvius India ended 3.93% lower on the BSE at Rs 4158 per share with a market cap of Rs 8,439.11 Cr after the Board declared stock split.

Vesuvius India Stock Split

At its February meeting, the Board of Directors approved the proposal to split/subdivide the company's existing equity shares from one fully paid-up equity share with a face value of Rs. 10/-each into ten fully paid-up equity shares with a face value of Re. 1/-each, subject to the approval of the company's shareholders at the following Annual General Meeting.

"The Record Date for the split/sub-division of equity shares will be decided after obtaining shareholders' approval and will be intimated in due course," said Vesuvius India in a stock exchange filing.

The 1:10 stock split has been proposed to enhance the liquidity of the company's equity shares and encourage the participation of retail/small investors by making the share price more affordable and to broaden the retail investors' base, informed Vesuvius India to stock exchanges.

Vesuvius India Financials

In the quarter ending in December 2024, Vesuvius India's net profit climbed by 5.01% to Rs 59.93 crore from Rs 57.07 crore in the quarter ending in December 2023. Sales in Q3FY25 climbed 22.83% to Rs 507.49 crore from Q3FY24's sales of Rs 413.15 crore. In December 2024, the net profit for the full year was Rs 264.52 crore, up 24.22% from December 2023's Rs 212.94 crore. Sales in 2024 rose 17.20% to Rs 1864.97 crore compared to the previous year, which ended in December 2023. The company has yet to declare its results for Q4FY25, which ended in March 2025.

Vesuvius India Share Price Target

"Vesuvius stock price is bearish on the Daily charts with strong resistance at 4680. A Daily close below support of 3970 could lead to a target of 3580 in the near term," commented A R Ramachandran, Independent Research Analyst.

Disclaimer

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