The shares of this smallcap company jumped around 2 percent in Thursday’s trading session after announcing bonus shares in the ratio of 3:1. In just six months the stock has delivered more than 150 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 1,768 crores, the shares of Bajaj Steel Industries Ltd started Thursday’s trading session on a higher note at Rs. 3,410.55 compared to its previous close of Rs. 3,350.35.
During the trading session, the shares hit a high of Rs. 3,499.75, gaining around 2 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 3, 397 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that at the Board Meeting held today i.e. October 03, 2024, have inter-alia considered and approved the issue of bonus shares in the ratio 3:1.
This means shareholders will receive 3 equity shares with a face value of Rs. 5 each for every 1 existing equity share of the same face value held as of the record date.
As per data available on the BSE, this will be the first instance of the company issuing bonus shares to its shareholders.
Financials:
Looking at the company’s financial statements, the revenue decreased by around 19 percent from Rs. 174 crores during the March quarter to Rs. 141 crores in the June quarter. Contrastingly, the net profits zoomed by 52 percent from Rs. 23 crores to Rs. 35 crores during the same timeframe.
Important Financial Ratios:
In terms of key financial metrics, the company reported a return on equity of 17.76 percent and a return on capital employed of 23.31 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 10.71 percent during the same timeframe.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters hold 48.27 percent of the shares, FIIs hold a marginal stake of 0.07 percent and the remaining 51.67 percent of the stake is held by the Public.
Product Details:
Bajaj Steel Industries Ltd is a supplier of various machined components, including spigots and balancing masses, to the Ordnance Factory in Nagpur.
This factory is part of the Indian Ordnance Factories, which is responsible for producing a wide range of defence equipment, including ammunition hardware and specialized components for the armed forces.
Company Profile:
Incorporated in 1961, Bajaj Steel Industries is a leading manufacturer and exporter specializing in industrial machinery, particularly for the cotton ginning sector.
The company uniquely produces equipment for all ginning technologies, including Double Roller, Saw Gin, and Rotobar systems, along with pressing technologies and seed processing solutions.
Written By Vaibhav Patil
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