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This Multibagger Diversified Co. Stock To Issue Bonus Shares In The Ratio Of 2:1
Bonus shares are issued in order to increase liquidity at no cost to investors or shareholders in a particular scrip. Consequently, share price is reduced in proportion to the bonus share issuance.
As companies' based on their short and long term objectives notify and announce on bonus share issuance, here is a company from the finance space Sindhu Trade Links that has announced and approved bonus share issuance in the ratio of 2:1 i.e. 2 share for every 1 share owned by the shareholders as on the record date.
Details on the bonus shares as intimated by the company
Record date has not been decided and hence one can buy the shares if they intend based on the company's standing and financials.
Record date for new stock market investors is the date based on which issuance of or any corporate action is decided for investors i.e. in a case if they have those particular shares as on the record date they are issued bonus shares or get split shares etc.
Financials of Sindhu Trade links and its stock price trajectory
Coming to the company's finanncials that provide with a view on how the company may perform going ahead, its revenues have been inching down and in Fy 21 the revenues dropped to Rs. 739.85 crore as against Rs. 1152.51 crore in Fy19. Though its net income has been held more or less steady at Rs. 62.85 crore.
The scrip's P/E ratio is also 104.83 as against the sector P/E in negative which suggests of loss for the sector.
Moving on to the stock's price movement, it moved from a 52-week low price of Rs. 128.3 to Rs. 166.2 as its 52-week high and last ended at Rs. 128.3. The company has logged gains to the tune of 2143% in a year.
The one reason that fuelled the rally of late is the heavy paring of its debt and its determination to be a net debt free concern in 2023. The company's debt equity ratio stands at 0.57 with company's net debt reduced by 1/3rd in February.
The company's peer entities are Bajaj Finance, Shriram Transport, Bajaj Holdings and Muthoot Finance among others.
Company profile
ks Ltd is engaged in the business of transportation, trading of oil & diesel, finance, civil construction and mining of coal. The Company's segments include Finance Operations, Oil and Lubricants, and Transportation.
Conclusion
The company's net income has more or less remained steady, but the company's financials cannot be called as very detrimental as its going on to reduce its debt which is indeed encouraging. Though there are concerns as the sector's P/E is held in the negative. So, the company's future profitability may be in some risk.
