Shares of this chemical stock under the ‘small-cap’ category jumped approximately 8 percent in Monday’s trading session after the company’s Board of Directors announced the record date for the issue of Bonus shares in the ratio of ‘1:1’. In the past six months, the company’s stock has gained nearly 50 percent for its holders.
With a market capitalization of Rs 4,293.81 crores, the stocks of Grauer & Weil (India) Limited started their trading session on Monday at Rs 183.90 and currently trades at Rs 189.40, gaining approximately 8 percent compared to the previous close of Rs 176.55 apiece.
Such sharp movements in the share price are observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), announced “10th April 2024” the record date for the issue of bonus shares in the ratio of 1:1.
The same means an issue of one new equity share of Rs 1 each for every existing equity share of Rs 1 each held by the shareholders of the company as on the record date.
The company’s Board of Directors, in their meeting held previously on 26th February 2024, had approved the issue and allotment of around 22.67 crore fully paid-up equity shares of Rs 1 each in the form of Bonus equity shares.
During the recent financial quarters, the company’s basic business indicators, viz, its operating revenues as well as after-tax profits, witnessed a jump in numbers with the former increasing from Rs 250 crores during Q2FY24 to Rs 285 crores during Q3FY24, and the latter, keeping the timeframe the same, rose from Rs 37 crores to Rs 43 crores.
In addition, due to a stellar performance annually, the company’s return ratios have shown a decent shift in numbers with the return on equity (RoE) increasing from 13.52 percent during FY21-22 to 16.62 percent during FY22-23, and the return on capital employed (RoCE), during the same time horizon, rising from 16.88 percent to 21.11 percent.
Grauer & Weil (India) Limited is primarily engaged in the business of manufacturing and selling chemicals as well as other engineering products in India. The company’s operating segments include ‘Surface Finishings’, ‘Engineering’, and the ‘Mall’ segment. Its product portfolio includes Specialty Chemicals, Electroplating, Distinct Surface Finishes, and others.
Written by Amit Madnani
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