A multibagger plastic products manufacturer has announced a bonus issue in the ratio of 2:1. The company’s shares closed at ₹ 383.10 per share, after reaching an intraday high of ₹ 396.90 apiece on the National Stock Exchange (NSE).
Shish Industries is engaged in manufacturing and selling corrugated plastic sheets which are used in industries like architecture and construction, packing, printing, medical equipment and so on.
In the past two years, the company’s share price increased from ₹ 66.60 apiece to ₹ 383.10, delivering multibagger returns of 475 percent. Therefore, an investment of ₹ 1 lakh in the company’s shares two years ago would be worth ₹ 5.75 lakhs today!
The company’s shares have delivered multibagger returns of a massive 2147 percent in the past five years as its share price increased from ₹ 17.05 apiece to the current levels. Thus, if an investor had invested in the company’s shares five years ago, the value of their holdings would have been ₹ 22.47 lakhs today!
In an exchange filing the company informed that it has fixed Friday, July 28, 2023 as the record date for determining the names of shareholders who are eligible to receive bonus shares in the ratio of 2:1. Therefore, eligible shareholders will receive two bonus equity shares of ₹ 10 each for every fully paid up equity shares of ₹ 10 that they hold in the company.
With a market capitalization of ₹ 444 crores, Shish Industries is a micro-cap company. It has a high return on equity of 25.93 percent and an ideal debt-to-equity ratio of 0.27. Its shares were trading at a price-to-earnings ratio (P/E) of 61.26, which is higher than the industry P/E of 16.10, indicating that the stock might be overvalued as compared to its peers. The company’s promoters hold a 66.48 percent stake in it, while retail investors hold 33.52 percent.
Written by Simran Bafna
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
