Shares of this multibagger auto ancillary stock jumped approximately 17 percent in Tuesday’s trading session after the company’s Board of Directors (BOD) intimated about a meeting scheduled this weekend to consider the proposal of issuing Bonus equity shares of the company.
With a market capitalization of Rs 627.08 crores, the stocks of Veljan Denison Limited started their trading session on Tuesday at Rs 2,650 and currently trades at Rs 2,787, gaining approximately 17 percent compared to the previous close of Rs 2,389.90 apiece.
Such bullish movements in the company’s share price are observed today after a BSE filing intimating about a meeting of the company’s Board of Directors (BOD), scheduled on Saturday, viz, 23rd March 2024, to consider the proposal for the issue of Bonus shares to the Equity shareholders of the company.
During the recent financial quarters, the company’s basic business parameters, including its operating revenues as well as after-tax profits, showed some positive movements with the former increasing from Rs 31.05 crores during Q2FY24 to Rs 31.51 crores during Q3FY24 and the latter, keeping the timeframe the same, rising from Rs 4.32 crores to Rs 5.31 crores.
In addition, the company’s ratio analysis portrays the return on equity (RoE) as well as the return on capital employed (RoCE) reported at decent numbers in FY23 with the former at 8.65 percent and the latter at 11.79 percent.
Keeping a purview of the last one year, the company’s stock delivered multibagger returns of approximately 123 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.23 lakhs.
As per the latest shareholding pattern data available for the December 2023 quarter, the company’s Promoters hold a 74.98 percent stake followed by the Public (retail) Investors holding the remaining 25.02 percent stake in the company.
Veljan Denison Limited is a company based in India that is involved in the business of manufacturing pumps, motors, custom-built power packs, valves, etc. The company operates via a single segment namely ‘Hydraulic equipment’. Its product portfolio includes single/double/triple gear pumps, seat valves, pressure controls, steering gear systems, and others.
Written by Amit Madnani
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