Shares of Maan Aluminium gained 5% on Monday’s intraday trades to reach a fresh 52-week high of ₹ 337.25 apiece. Its shares were locked in an upper circuit following the announcement of a stock split and a bonus issue.
Maan Aluminium is engaged in the business of manufacturing and trading aluminium profiles, ingots and billets. It is also involved in the scrap trade for non-ferrous metals.
According to data available on the exchanges, the company’s board has declared a 1:2 stock split. This means that each equity share of the company having a face value of ₹ 10 each, will be divided into two equity shares having a face value of ₹ 5 each. Moreover, it has declared a 1:1 bonus issue. Therefore, one fully paid-up bonus share will be issued for every equity share that shareholders hold.
The board has fixed Thursday, July 27, 2023, as the record date, for the purpose of ascertaining the eligibility of the shareholders entitled to these corporate actions, subject to approval by the shareholders in the upcoming annual general meeting (AGM) to be held on Wednesday, July 19, 2023. The rationale is to enhance the liquidity of its equity shares and to widen the shareholder base by making the shares more economical.
In the past year, the company’s share price escalated from ₹ 112.10 to ₹ 337.25 apiece, delivering multibagger returns of 200%. Therefore, an investment of ₹1 lakh in the company’s shares a year ago would be worth ₹ 3 lakhs today!
Maan Aluminium is a small-cap company with a market capitalization of ₹ 434 crores. It has a high return on equity of 46.56% and an ideal debt-to-equity ratio of 0.43. Moreover, it has a dividend yield of 1.01%. The company’s shares were trading at a price-to-earnings ratio (P/E) of 8.69, which is lower than the industry P/E of 11.83, suggesting that the stock might be undervalued as compared to its peers.
Written By Simran Bafna
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