A mid-cap pharma company recently fixed the record date for a 1:2 stock split. At 12:00 PM on Thursday, its shares were trading at ₹ 2762.25 apiece on the National Stock Exchange (NSE), as compared to its previous day’s closing price of ₹ 2746.20.
J.B. Chemicals and Pharmaceuticals is among India’s leading pharmaceutical companies. It is an integrated, publicly-listed organisation focusing on supplying affordable, quality products both in India and internationally, JBCPL is trusted by healthcare professionals globally.
In the past three years, the company’s share price increased by 250 per cent from ₹ 795.87 to ₹ 2,789.80 apiece, to deliver multibagger returns. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares three years ago, the value of their holdings would have been ₹ 3.50 lakhs today!
According to an exchange filing, the company has fixed September 18, 2023, as the record date to determine the eligibility of shareholders for the purpose of a 1:2 stock split. Accordingly, each equity share of the company with a face value of ₹ 2 each will be subdivided/ split into two equity shares with a face value of ₹ 1 each.
With a market capitalization of ₹ 21,260 crores, J B Chemicals is a mid-cap company. It has an ideal return on equity of 19.35 per cent and an ideal debt-to-equity ratio of 0.22. Its shares were trading at a price-to-earnings ratio (P/E) of 47.55, which is higher than the industry P/E of 32.28, indicating that the stock might be overvalued, compared to its peers.
The company’s promoters hold a 53.91 per cent stake in it followed by retail investors with 18.44 per cent, mutual funds with 15.57 per cent, foreign institutions with 9.53 per cent and other domestic institutions with 2.55 per cent.
Written by Simran Bafna
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