Synopsis: Upsurge Seeds of Agriculture approved a 3:7 bonus issue, rewarding shareholders with additional shares, highlighting strong growth momentum and reinforcing long-term investor confidence in the company.
The company, known for its expertise in agriculture and seed production, has recently come into the spotlight with an important update. Its board has approved a bonus issue, catching the attention of investors and market watchers alike. This announcement places the micro-cap stock in focus, signalling a potential turning point.
Upsurge Seeds of Agriculture Limited’s stock, with a market capitalisation of Rs. 218.85 crores, rose to Rs. 314.40, hitting a high of up to 0.99 percent from its previous closing price of Rs. 311.30.
Bonus Issue
The board of USASEEDS has approved issuing bonus shares to its equity shareholders in a ratio of 3 new shares for every 7 existing shares held, subject to shareholder approval. This means shareholders will receive additional shares for free based on their current holdings, with each share having a face value of Rs. 10. The exact record date, which determines eligibility for receiving these shares, will be announced later.
This move increases the number of shares held by investors without any additional investment on their part, as the bonus shares are issued from the company’s reserves.
For example, if an investor currently owns 700 shares of USASEEDS, with this bonus issue, they would receive 300 additional shares (700 × 3/7 = 300). After the bonus, their total shareholding would increase to 1000 shares, providing more shares but without changing the overall value of their investment as the share price adjusts accordingly. Essentially, bonus shares are a way for companies to reward shareholders without paying out cash dividends, helping maintain liquidity while increasing shareholder wealth over time.
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Financial Highlight
In H2FY25, the company reported revenue of Rs. 86 crore, a 43% YoY growth compared to Rs. 60 crore in H2FY24 and a 69% HoH increase over H1FY25 (Rs. 51 crore). Profit for H2FY25 stood at Rs. 6 crore, up 20% YoY from Rs. 5 crore in H2FY24, and doubled compared to Rs. 3 crore in H1FY25. This indicates both strong year-on-year expansion and healthy sequential recovery.
Over the longer term, performance remains consistent with a 3-year profit CAGR of 29%, sales CAGR of 22%, and ROE CAGR of 17%. The sustained growth trajectory, alongside the sequential margin recovery in H1FY25, underscores improving operating leverage and efficiency.
Written By Fazal Ul Vahab C H
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