Midcap Stock To Trade 1:3 Bonus Share Next Week, Buy For 25% Gains, Says ICICI Securities

Midcap Plastic sector stock Astral Ltd gets a "Buy" call from leading brokerage ICICI Securities. The brokerage has assigned a target price of Rs 2,373/share, claims a potential upside of up to 25% from its current level. The stock, on 7 February 2023, declared 1:3 Bonus Share. It also fixed the "Record Date" for the said Bonus Share in March. It is set to trade Ex-Bonus Share next week. See the details below to know more:

Stock Performance and Returns

The stock of Astral is currently trading at Rs 1,900.55/share, down 1.13% from its previous close. The stock on 9 September 2022 recorded its 52 week high at Rs 2,654.80/share and 52 week low on 20 June 2022 at Rs 1,581.55/share, respectively.

It has fallen 0.92% in 1 week, 1.96% in 1 month and 7.72% in 3 months, respectively. In 1 year it has fallen by 1.69%. The stock has given a robust positive return of 126.52% in 3 years and 266.66% in 5 years, respectively.

Bonus Share and Record Date

According to the regulatory filing by the company, it said, "Recommended issue of bonus equity shares in the proportion of 1 :3, that is 1 (One) bonus equity share of Re. 1/- each for every 3 (Three) fully paid-up equity shares held, as on the record date, subject to approval of the Members of the Company. Information as per regulation 30 of SEBI (LODR) Regulations, 2015 is enclosed herewith."

It added, "The Board has fixed Record Date for reckoning eligible shareholders entitled to receive bonus shares, as stated below:- Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Tuesday, March 14, 2023 as the Record Date, for the purpose of ascertaining the eligibility of shareholders entitled for issuance of Bonus Equity Shares in the proportion of 1 (One) Equity Shares of Re. 1/- each for every 3 (Three) existing Equity Shares of Re. 1/- each, subject to the approval of Members, which is being obtained through Extra Ordinary General Meeting."

Demand and margin trends remain favourable, Buy for a target price of Rs 2,373/share

ICICI Securities has said, "We continue to like Astral for its strong brand, comprehensive product portfolio, wide distribution reach and robust balance sheet. We believe Astral has near term margin and demand tailwinds in both its major businesses (pipes and adhesives). Maintain BUY with an unchanged Mar'24E target price of Rs 2,373."

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.