Synopsis:
Valiant Communications jumped sharply after the board announced plans to consider the issuance of bonus shares in its upcoming meeting, dated 3 September 2025.
The shares of this communication equipment company are in focus after it announced that it will consider the issuance of bonus shares at its next meeting. In this article, we will dive more into the details.
With a market capitalization of Rs 727 crore, the shares of Valiant Communications Ltd made a day high of Rs 953.30, which surged to hit its 5 percent upper circuit limit from its previous day closing price of Rs 907.95 per share. Over the past five years, the stock has delivered a multibagger return of 2,582 percent.
Valiant Communications Ltd has announced that its Board of Directors will meet on September 3, 2025, to discuss and potentially approve a proposal for issuing bonus equity shares to the company’s shareholders, pending member approval.
Bonus shares are essentially free shares given to existing shareholders based on how many shares they already own. These shares typically come from the company’s accumulated profits or reserves, allowing the company to reward its shareholders without having to pay out cash dividends.
While the overall value of an investor’s holdings stays the same, the number of shares they own increases, and usually, the stock price adjusts accordingly after the bonus shares are issued.
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Financial Highlights
The company’s revenue for Q1 FY26 was Rs 18.32 crore, representing a 34 percent increase from Rs 13.66 crore in the same quarter last year. Additionally, on a sequential basis, revenue grew by 14 percent from Rs 16.12 crore in Q4 FY25.
Regarding its profitability, the company reported a 51 percent net profit increase to Rs 4.72 crore in Q1 FY26, compared to Rs 3.12 crore in Q1 FY25. Additionally, on a QoQ basis, it surged by 12 percent from Rs 4.22 crore.
The stock delivered an ROE and ROCE of 16.95 percent and 22.10 percent respectively, and is currently trading at a high P/E of 65x as compared to its industry average of 47x.
Valiant Communications Limited is a company based in India that specializes in making communication equipment and offering related services. They focus on areas like transmission, time and frequency synchronization, and cybersecurity solutions tailored for various utility sectors, including power, oil and gas, railways, metro communications, airports, and mobile backhaul.
Their product lineup features GPS/GNSS-based master clocks, IEEE 1588v2 PTP solutions, NTP time servers, and sub-master clocks. With a manufacturing facility in New Delhi, Valiant operates not just in India but also in the U.S., Europe, and other international markets.
Written by Satyajeet Mukherjee
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