Shares of this small-cap company jumps up to 4 percent in Wednesday’s trading session after announcing a stock split in the ratio 1:2. The shares have delivered a multibagger return of 119 percent to its shareholders in one year.
With a market capitalisation of Rs. 3,298 crores, the shares of Bharat Bijlee Ltd started Wednesday’s trading session, on a lower note at Rs. 5,750 compared to its previous close of Rs. 5,769. During the trading session, the shares hit a high of Rs. 6,069, gaining around 4 percent and are currently trading at Rs. 5,850 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that the board of directors had approved of sub-division or split of the company’s 1 Equity Share having a face value of Rs. 10 each into 2 equity shares of the company having face value of Rs. 5 each, which is subject to the approval of shareholders. In this regard, the record date is yet to be decided by the company.
The decision to undergo a stock split was made to broaden the shareholder base, enhance liquidity in the capital market, and ensure greater affordability for small retail investors by making shares more accessible.
Coming onto the company’s financial statements, the revenue increased marginally by around 1 percent from Rs. 420 crores during the September quarter to Rs. 424 crores in the December quarter. In addition, the net profits increased by 7 percent from Rs. 28 crores to Rs. 30 crores during the same timeframe.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 4.94 percent during FY 21-22 to 6.04 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 8.20 percent to 9.23 percent during the same timeframe. Furthermore, the net profit margin increased from 5.89 percent during FY21-22 to 7.85 percent during FY22-23.
The company has been focused on growth through the expansion of its manufacturing range and capacities, related diversifications, and foray into new markets through strategic partnerships. Additionally, Bharat Bijlee Ltd has set up a new plant for Magnet Technology Machines at its Airoli campus, which commenced operations in 2022.
Bharat Bijlee Ltd caters to a diverse range of industries such as power, refineries, steel, cement, railways, machinery, construction, and textiles. Some of its clients include Gujarat Ambuja Cement, Grasim Industries, and various other companies in the power and industrial sectors.
Headquartered in Mumbai, Bharat Bijlee was incorporated in 1946. The company engaged in the manufacturing of transformers, electric motors, elevator systems, drives and automation. It also provides turnkey solutions for EHV switchyards, HV and MV substations, Electrical Balance of Plants, etc.
Written By Vaibhav Patil
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