3 stocks with 1 year return of up to 160% going to turn ex-split this week
4 min read 26 Mar 2023, 04:35 PM ISTA stock split is a corporate action which increases the number of outstanding shares by issuing more shares to existing shareholders while lowering the price of each share accordingly by trimming the face value.
PremiumA stock split is a corporate action which increases the number of outstanding shares by issuing more shares to existing shareholders while lowering the price of each share accordingly by trimming the face value. Generally, companies announce stock split to make shares cheaper and to enhance liquidity, making it intuitive for investors to trade. A stock split has no effect on the company's overall value or the percentage of ownership held by each shareholder. It merely raises the number of outstanding shares while decreasing the price per share, thus the company's overall market value stays the same following the stock split. Investors should be aware of the record and ex-split dates. The record date is the day that a shareholder's name must be in the company's book of records in order to be eligible for a stock split, whereas the ex-split date indicates that the split has completed and trading of the new split shares has commenced. This is the first day of trading on the stock market for newly split shares. Here are three stocks that will trade ex-split this week that market players may watch.
Bharat Agri Fert & Realty Ltd
Bharat Agri Fert & Realty Ltd is a small cap company with a market capitalization of ₹545.44 Cr that operates in the commodities sector. The firm went public in 1962 and listed on the Bombay Stock Exchange. It is one of the top producers of NPK Fertilisers, primarily SSP Fertilisers in powder and granulated kinds.
“The Company has fixed Thursday, 30th March, 2023 as the Record Date for the purpose of Sub-division of 1 (One) Equity Share of the face value of Rs. 10/- each (Rupees Ten only) fully paid-up into 10 (Ten) Equity Shares of Rs.1/- each (Rupee One only) fully paid-up," said the Board of Bharat Agri in a stock exchange filing.
On Friday the shares of Bharat Agri Fert & Realty Ltd closed on BSE at ₹1031.95 apiece level, down by 1.76% from the previous close of ₹1050.45. The stock touched a 52-week-high of ₹1,215.00 on (27/01/2023) and a 52-week-low of ₹369.00 on (29/07/2022). In the last 1 year the stock has gained 161.20% and on a YTD basis it has rallied 2.96% so far in 2023.
Commenting on the technical outlook of the stock, A R Ramachandran, Co-founder & Trainer-Tips2trades said "Weak fundamentals in terms of profit margins & poor return ratios coupled with very high inventory days makes Bharat Agri Fert & Realty a risky buy even after a sharp correction. Technically, any bounce back to 1160-1200 should be used to exit previous buy positions. Support will be at 990."
Artemis Electricals and Projects Ltd
Artemis Electricals and Projects Ltd is a small cap company with a market capitalization of ₹294.09 Cr that operates in the capital goods industry.
“The Company has fixed Friday, March 31, 2023, as the 'Record Date' for the purpose of determining the eligibility of shareholders for the sub-division of the ordinary (equity) shares of face value ₹10/- (Rupees Ten) each into Ordinary (equity) Shares of face value of ₹1/- (Rupee one) each, as approved by the shareholders at the 13th Annual General Meeting of the Company held on September 30, 2022," said the Board of Directors of Artemis Electricals and Projects Ltd in a stock exchange filing.
On Friday, the shares of Artemis Electricals and Projects closed on BSE at ₹117.15 apiece level, down by 1.26% from the previous close of ₹118.65. The stock touched a 52-week-high of ₹126.75 on (01/02/2023) and a 52-week-low of ₹41.25 on (06/07/2022). In the last 1 year, the stock has gained 122.72% and on a YTD basis, it gained 80.09% so far in 2023.
Commenting on the technical outlook of the stock, A R Ramachandran said "Inconsistent financials in terms of profitability with an increasing debt burden makes Artemis Electricals a risky buy. Technically, investors should exit buy at current levels or even on a bounce up to 127 as a price correction till 72 looks likely."
Avance Technologies Ltd
Avance Technologies Ltd is a small cap IT company recorded a market cap of ₹11.50 Cr on Friday closing. The Board by approving 1:2 stock split, said in a stock exchange filing that the equity shares of the company have been sub-divided from 1 equity share having a face value of Rs. 10/- each, fully paid-up into 2 equity shares having face value of Rs. 5/- each fully paid up.
“The Board of Directors of the company has fixed Friday, 31st March 2023 as the ‘Record Date’ for determining the eligibility of Shareholders for the purpose of sub-division/split of Equity Shares of the Company," said Avance Technologies in a stock exchange filing.
On Friday, the shares of Avance Technologies closed on the BSE at ₹0.58 apiece level, up by 3.57% from the previous close of ₹0.56. The stock touched a 52-week-high of ₹0.58 on (24/03/2023) and a 52-week-low of ₹0.36 on (06/02/2023). The stock has appreciated 18.37% in the last 1 year, and it has risen 56.76% on a YTD basis.
