Tempting 2:1 Bonus Shares & Rs 12.50 Dividend Announced: Stock Price Eyes Rs 5000; A Combo Bonanza?

Transformers, particularly power and distribution transformers, as well as electronics and communications transformers, are the main products of Shilchar Technologies Ltd., an Indian firm. The business has a sizable manufacturing facility that can generate 7500 MVA of transformers each year. Their factory has a manufacturing space of 160,000 square feet and a land area of 750,000 square feet. Following the company's announcement of a dividend and bonus shares, Shilchar Technologies' shares finished Monday at a 5% upper circuit limit at Rs 6388.65 per share on the BSE, with a market valuation of Rs 4,872.50 Cr.

Shilchar Technologies Bonus Shares

The Board of Directors at their meeting held on today i.e. Monday, 21st April, 2025 considered and recommended "issue of bonus equity shares in the proportion of 2:1 i.e. 1 (One) new fully paid-up equity shares of Rs 10/- (Rupees Ten) each for every 2 (Two) existing fully paid-up equity share of Rs 10/- (Rupees Ten) each held, to the eligible equity shareholders of the Company as on the record date, by capitalization of free reserves," said Shilchar Technologies in a stock exchange filing.

The company's pre-bonus issue paid-up share capital as on date was 76,26,800 fully paid-up equity shares of Rs. 10/- each aggregating to Rs. 7,62,68,000 whereas post-bonus issue paid-up share capital is 1,14,40,200 fully paid-up equity shares of Rs. 10/- each aggregating to Rs. 1,14,40,2000/-.

The estimated date by which such bonus shares would be credited / dispatched is on or before 20th June, 2025 as per Shilchar Technologies.

Shilchar Technologies Dividend

The Board of Directors "recommended a final dividend @ 125 % i.e. Rs. 12.50/- per equity share of Rs. 10/- each, subject to approval of Shareholders at the ensuing Annual General Meeting for Financial Year 2024-2025," Shilchar Technologies said in a regulatory filing on Monday.

Shilchar Technologies Q4 Results

With a 119.1% upsurge in revenue from operations to Rs 231.86 crore in Q4 FY25 compared to Q4 FY24, the company's standalone net profit jumped 121.26% to Rs 55.36 crore. In Q4 of FY25, profit before tax (PBT) was Rs 74.68 crore, rising 118.94% from Rs 34.11 crore in the same period last year. In Q4 of FY25, the overall expenses increased by 116.3% year on year to Rs 161.77 crore.

Shilchar Technologies Share Price Target

"Shilchar Tech stock price is slightly bearish on the Daily charts with strong resistance at 6167. A Daily close below support of 5805 could lead to a target of 5000 in the near term," commented A R Ramachandran, Independent Research Analyst.

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