Synopsis:
Univastu India approved a 2:1 bonus issue, offering two bonus shares for every existing share, boosting investor interest and enhancing stock visibility in the market.
Engaged in engineering, procurement, and construction services, the company is known for delivering infrastructure projects across multiple sectors has gained attention as the firm approved a 2:1 bonus issue, a move that places its stock firmly in focus among investors.
Univastu India Limited‘s stock, with a market capitalisation of Rs. 278.30 crores, rose to Rs. 238.05, hitting high of up to 2.87 percent from its previous closing price of Rs. 231.40. Furthermore, the stock over the past year has given a return of 56 percent.
Bonus issue
The company will issue bonus shares in a 2:1 ratio, which means for every 1 existing share a shareholder holds, they will receive 2 new shares for free. For example, if a shareholder owns 100 shares, they will get 200 new bonus shares, resulting in a total of 300 shares.
Bonus shares increase the number of shares a person owns but do not change the total value of their investment immediately. This happens because the price of each share adjusts downward proportionally after the bonus shares are issued. Bonus shares are often given as a reward to shareholders or to make shares more affordable and increase liquidity in the market.
Additionally, bonus shares are also reserved for holders of compulsory convertible warrants issued by the company, meaning those warrant holders will also receive bonus shares accordingly.
In summary, the 2:1 bonus share issue significantly increases the number of shares held by shareholders, but the overall investment value remains roughly the same due to the adjusted share price. Bonus is expected to be issued on 28 october 2025.
Q1 Financial Highlight
Revenue in Q1FY26 stood at Rs. 29.41 crore, up 4.6% YoY from Rs. 28.11 crore, but declined 26.3% sequentially against Rs. 39.91 crore in Q4FY25. Over the past three years, the company has delivered strong topline growth with a 43% sales CAGR, reflecting consistent business expansion.
Net profit came in at Rs. 4.01 crore in Q1FY26, marking a 63.7% YoY rise from Rs. 2.45 crore but a slight 5% QoQ dip versus Rs. 4.22 crore. Profit has compounded at 26% CAGR over three years, supported by improved return ratios, with ROE showing a 15% three-year CAGR.
Written By Fazal Ul Vahab C H
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
