Shares of Hardwyn India were in focus, ever since the company announced an issue of bonus shares and a stock split. It recently announced the record date for these corporate actions.
Hardwyn India manufactures architectural hardware and glass fittings for residential and commercial structures. Its shares were trading at ₹ 373.70 apiece at 12:11 PM on Thursday and Its share price has risen by 42.88 percent in the past month.
According to an exchange filing, the company has approved a sub-division/split of its equity shares of the face value of ₹ 10 each into 10 equity shares of the face value of ₹ 1 each, i.e., in the ratio of 1:10, subject to the approval of its shareholders.
Moreover, it has announced the issue of 1 bonus equity share of ₹ 1 each for every three shares held by shareholders, i.e., in the ratio of 1:3. These shares will be issued out of the free reserves of the company available as at March 31, 2023. Free reserves of ₹ 8,72,21,190 are required for the issue, and the company had ₹ 8,85,00,000 in its reserves as of March 31, 2023.
Hardwyn India said in an exchange filing that these corporate actions have been announced to enhance liquidity, widen the shareholder base and make the shares more affordable to small investors. It has fixed Monday, 05th June 2023 as the record date for determining the eligibility of shareholders for these corporate actions.
In the past year, the company’s shares have given multibagger returns of 130.92 percent as their share price increased from ₹ 161.83 to ₹ 373.70 apiece. If an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.30 lakhs today!
Hardwyn India has an ideal return on equity of 24.97 percent and an ideal debt-to-equity ratio of 0.42. Its shares were trading at a price-to-earnings ratio (P/E) of 100.00, which is significantly higher than the industry P/E of 12.05, indicating that it is overvalued as compared to its peers.
Written by Simran Bafna
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