7 Stocks To Buy Now To Be Entitled To Bonus Shares In June 2022

Over the last couple of weeks, we have seen several companies declaring a bonus issue of shares. Here are a list of 7 companies, where there is a bonus issue of shares. We wish to inform readers, that bonus issue of shares does not mean that you would always make money.

List of companies with bonus entitlement in June

Name of company	Bonus ratio	Ex dividend date
Ratnamani Metals	1:2	June 30, 2022
Indian Oil	1:2	June 30, 2022
Varun Beverages	1:2	June 6, 2022
Nintec Systems	1:2	June 6, 2022
RO Jewels	82:32	June 2, 2022
HICS Cements	1:1	June 2, 2022
Mishtann Foods	1:1	June 2, 2022

Should you buy the shares of the company that are issuing bonus shares?

While you will always get the bonus shares, there is no certainty that you will make money, when buying shares of companies that have declared bonus issue of shares. Let us explain. For example, if the stock of a company is trading at Rs 200 and it has declared a bonus of 1:1, the stock is likely to fall to Rs 100, after the stock goes ex bonus. So to that extent there is no stupendous profits to be made. Apart from this, the most important thing that investors should look at is not the bonus issue of shares, but, do a through analysis of the fundamentals of the company. In the past, we have seen that companies that do not have sound management and a constant track record also issuing bonus shares. Therefore, investors should be a little careful here.

Varun Beverages and Indian Oil maybe good stocks to buy

If we take the fundamental analysis route than stocks of Indian Oil and Varun Beverages could be good stocks to bet on. Indian Oil, has a track record of consistently declaring higher dividends also. In fact, the dividend yield on the stock works to around 9%, which makes the stock attractive for investors. Varun Beverages is one of the biggest franchisee for Pepsi outside of the United States. That way the business model of the company is rather robust. The shares of Indian Oil were last seen trading at Rs 116 on the NSE. The stock has been declining on account of crude oil moving higher. Also, the quarterly numbers of the company for the period ending March 31, 2022 were pretty much subdued. We believe that Indian Oil will continue to record decent profits and the dividends, will make the stock attractive. Ratnamani Metals, which has also declared a 1:2 bonus issue of shares has a long-track record and in the past has been recommended by brokerage with a buy call. The ex bonus date for Ratnamani Metals is June 30, 2022.

Disclaimer

Investors are advised caution as the markets have become exceedingly volatile. Neither Greynium Information Technologies, nor the author would be responsible for any losses based on a decision reading the above article. Every effort has been made to provide accurate information and readers should understand the inherent risks before investing in the markets. The author and his family do not own shares of the above companies.