Four multibagger stocks to turn ex-bonus this week, gives 400-700% return in 2 years
- While Bharat Gears will turn ex-bonus on September 27, the remaining shares will become ex-bonus on September 28. In the first quarter of FY23, these companies have witnessed strong growth on the top-line front, while profits have been healthy too.
Four multibagger stocks will turn ex-bonus this week. These are Bharat Gears, Pondy Oxides, Ram Ratna Wires, and Excel Realty. These shares have given more than 400% to 700% returns to their investors in 2 years. They will be in focus in this week's trading sessions following the development. While Bharat Gears will turn ex-bonus on September 27, the remaining shares will become ex-bonus on September 28. In the first quarter of FY23, these companies have witnessed strong growth on the top-line front, while profits have been healthy too.
Ex-bonus date is an important day for investors to be eligible for bonus shares. To become eligible for bonus shares, an investor should buy the stocks of a company at least one day or two days before the ex-date. This is because of the T+1 and T+2 settlement cycles.
Generally, a listed company distributes bonus shares on their existing equity shares to current shareholders free of cost. A listed company issues bonus shares due to free reserves and surplus and adding fresh capital. The face value remains the same post bonus issue.
Bharat Gears (BGL)
BGL has announced bonus shares in the ratio of 1:2. Simply put, the company will give one bonus share on the existing two equity shares to eligible shareholders. A total of 51,18,35 equity shares having a face value of ₹10 each are proposed to be issued under the bonus shares.
The bonus is out of the company's free reserves is over ₹5.11 crore. As of March 31, 2022, the company has free reserves of more than ₹5.88 crore.
Post bonus issue, the company's share capital is expected to be more than ₹15.35 crore compared to the current share capital of over ₹10.23 crore (pre-bonus issue scenario).
The company has fixed September 28 as the record date to determine eligible shareholders for the bonus issue. The company received shareholders' approval for bonus shares on September 20 at the 50th annual general meeting.
Thereby, BGL stock will turn ex-bonus on September 27. The company plans to pay the bonus shares within two months from the date of approval by the board of directors on August 24, 2022.
BGL is one of the world leaders in gears technology and India's largest gear manufacturer. Its delivery expands to nations across Europe, USA, Mexico, and Asia. The company manufactures a wide range of Ring Gears and Pinions, Transmission Gears and Shafts, Differential Gears, and Gear Boxes majorly for the automotive industry.
In the first quarter of FY23 (Q1FY23), the company posted a net profit of ₹4.30 crore against ₹6.39 crore in Q1FY22. Revenue from operations stood at ₹183.97 crore versus ₹164.68 crore in Q1 of FY22.
On Friday, BGL shares closed at ₹228.20 apiece down by 3.2% on BSE. The company's market cap is around ₹233.60 crore.
Despite the downside last week, BGL is a multibagger stock gaining nearly 412% in 2 years. The shares were less than ₹45 apiece on September 23, 2020.
Pondy Oxides & Chemicals
Pondy Oxides will issue bonus shares in the ratio of 1:1. This means, the company will pay one bonus share on every existing one equity shares. The company has fixed September 29 as the record date to determine eligible shareholders for the benefit of bonus shares.
Thereby, Pondy Oxides shares will turn ex-bonus on September 28. The bonus shares received approval in the 27th annual general meeting on September 21.
In Q1FY23, the company garnered a net profit of ₹11.6 crore compared to ₹8.57 crore in Q1FY22. Revenue from operations stood at ₹364 crore versus ₹243.97 crore in Q1 of FY22.
Pondy Oxides is the country's leading lead, lead alloys, and plastic additives producer. The best grade lead and lead alloys, as well as PVC additives, are produced by POCL, a prominent secondary lead smelter in India.
On Friday, Pondy Oxides shares closed at ₹1,178.75 apiece up by 0.80% on BSE. The company's market valuation is around ₹685.14 crore.
Pondy Oxides is a multibagger stock. The shares have climbed by a whopping nearly 183% in a year. The shares were around ₹416.95 on September 23 last year. While the shares have skyrocketed by more than 405% in 2 years compared to the price level of ₹233.4 apiece on September 23, 2020.
Ram Ratna Wires
Ram Ratna Wires has fixed September 29 as the record date for identifying eligible shareholders in the record for bonus shares in the ratio of 1:1. The company will offer one bonus share having a face value of ₹5 each for every one existing equity share.
Thereby, the stock will turn ex-bonus on September 28.
The company will issue a total of 2.2 crore equity shares under the bonus offer aggregating to ₹11 crore. The shares will be issued out of the company's securities premium and general reserves available as of March 31, 2022.
As of March 31, 2022, the company's free reserves and securities premium is at ₹208.41 crore.
Ram Ratna plans to pay bonus shares on or before October 9, 2022.
In 2 years, the shares have breathtakingly risen by nearly 561%. On September 23, 2020, the shares were merely ₹73 apiece on BSE. Meanwhile, in a year, Ram Ratna shares have climbed by massive nearly 239% on the same exchange.
On BSE, Ram Ratna shares are currently at ₹460.35 apiece up by 1.77% on Friday. The company's market cap is around ₹1,012.77 crore.
Ram Ratna is a part of RR Global which is one of the leading conglomerates in the electrical & copper industry. The company is the 2nd largest manufacturer of super enamelled copper winding wires in India. Its products are manufactured at India's first dust-free winding wire manufacturing facilities, Salasar Copper, situated at Silvassa.
In Q1FY23, Ram Ratna Wires posted a net profit of ₹9.77 crore versus ₹6.59 crore in Q1FY22. Revenue from operations stood at ₹604.08 crore against ₹412.77 crore in Q1 of the previous fiscal.
Excel Realty N Infra
Excel Realty has fixed September 29 as the record date to determine eligible shareholders for bonus issues in the 1:2 ratio and stock split in the 10:1 ratio.
Thereby, it will turn ex-bonus and ex-split on September 28.
Under the 1:2 bonus issue, the company will offer one bonus share on the existing two equity shares to eligible shareholders. While under the 5:1 stock split, the firm will sub-dividend one existing equity share having a face value of ₹10 each -- into 10 equity shares having a face value of Re 1 each.
In Q1FY23, the company posted a standalone net profit of ₹1 crore against a loss of ₹1.21 crore in Q1FY22. Standalone revenue stood at ₹2.92 crore against zero revenue in Q1FY22. The company registered a revenue of ₹5.38 crore in Q4FY22.
Excel Realty N Infra is solely into the business of development. The company delivers unmatched business value to customers through a combination of process excellence, quality frameworks, and service delivery innovation.
In a year, Excel Realty's shares have jumped nearly 184% on BSE. The shares were around ₹3.2 apiece on September 23 last year. While the shares have zoomed by a massive nearly 711%. The shares were merely ₹1.12 apiece on September 23, 2020.
On BSE, the shares stood at ₹9.08 apiece up by 3.9% on Friday. The company's market cap is ₹85.39 crore.
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