Multibagger stock announces record date for 2:1 bonus shares: Do you own?

Multibagger stock announces record date for 2:1 bonus shares: Do you own?


A small cap corporation with a market valuation of 2,641.73 crore in the metal industry is Shivalik Bimetal Controls Ltd. Shivalik Bimetal Controls Ltd. is a company that specializes in combining materials using a variety of techniques, including resistance welding, solder reflow, diffusion bonding, and bonding/cladding. Thermostatic Bimetal, Clad Metal, Spring Rolled Stainless Steels, Electron Beam Welded Material with Multi- Gauge and Multi- Materials Strips, and Thermostatic Edge- Welded Strips are all part of the company’s current project for a wide range of industries. The corporation has made the record date public in order to establish shareholders’ eligibility for the 2:1 bonus shares. The company has said in a regulatory filing that “This is further to our letter dated August 29, 2022 intimating the Issue of Bonus Shares, which is subject to approval of the shareholders. We wish to inform you that pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Thursday, October 13, 2022, as the Record Date to determine eligible shareholders entitled to receive the Bonus Shares.”

The firm announced on August 29, 2022, that the Board of Directors had authorised the issue of bonus shares in a 2:1 ratio, meaning that there would be one bonus equity share worth Rs. 2 for every two fully paid-up equity shares held as of the record date. Bonus share details of Shivalik Bimetal Controls as per the data available on the stock exchange filingsTotal number of securities proposed to be issued or the total amount for which the securities will be issued (approximately): Rs.3,84,02,800/- divided into 19201400 Equity Shares of Rs. 2/- each. Whether bonus is out of free reserves created out of profits or share premium account: Bonus shares will be issued out of free reserves and securities premium account of the Company available as of March 31, 2022. Bonus ratio: 1 (One) equity share of 2/- each for every 2 (Two) existing equity shares of Rs.2/- each held as on a record date. Pre-Bonus paid-up share capital is Rs. 7,68,05,600/- divided into 3,84,02,800 equity shares of Rs. 2/- each. Post-Bonus paid-up share capital will be Rs. 11,52,08,400/- divided into 57604200 equity shares of Rs. 2/- each.
Free reserves and/ or share premium required for implementing the bonus issue: Free reserves and/ or share premium of Rs. 3,84,02,800/- is required for implementing the Bonus Issue. Free reserves and/ or share premium available for capitalization and the date as on which such balance is available: As on March 31, 2022, aggregate amount of free reserves, and securities premium account is Rs. 17,949.83 Lakhs. Estimated date by which such bonus shares would be credited/dispatched: Within 2 months from the date of Board approval i.e. by 28th October, 2022. Shivalik Bimetal Controls’ shares on the NSE ended today at Rs. 686.00 a piece, down 3.63 per cent from the previous close of Rs. 711.85. Today’s trading had a total volume of 177,448 shares, which was more than the 20-Day average volume of 106,262 shares. The stock has produced a multibagger return of 453.00% over the past five years, and a multibagger return of 1272.88% during the past three years. The stock has generated a multibagger return of 150.59% over the past year, and on a YTD basis, it has climbed by 72.73% so far in 2022. For the quarter ended June, the company recorded a promoter shareholding of 60.61%, FIIs holding of 0.05%, DIIs holding of 0.16%, and public shareholding of 39.18%.  

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₹300 to ₹10,170: Debt-free multibagger stock turns ₹1 lakh to ₹33 lakh: Should you buy?

₹300 to ₹10,170: Debt-free multibagger stock turns ₹1 lakh to ₹33 lakh: Should you buy?

A mid-cap company with a market worth of 19,094.38 crore, ZF Commercial Vehicle Control Systems India Ltd. operates in the consumer discretionary industry. ZF is a multinational technology company that offers solutions for industrial technology, commercial vehicles, and passenger vehicles. ZF offers complete product and software solutions for both established vehicle manufacturers and mobility service providers in the four technological fields of Vehicle Motion Control, Integrated Safety, Automated Driving, and Electric Mobility. Let’s look at how the shares of ZF Commercial Vehicle Control Systems India, one of the multibagger stocks, made investors lakhpati over the course of 14 years of investment. Share price history of ZF Commercial Vehicle Control Systems India LtdZF Commercial Vehicle Control Systems India Ltd shares ended today’s trading session on the NSE at 10,170.00 a piece, up 1.54% from the previous closing of 10,015.35. A multibagger return and an all-time high of 3,297.36% can be seen in the stock price, which has soared from 299.35 on October 3, 2008 to the current market price. As a consequence, if an investor had invested 1 lakh in ZF Commercial shares 14 years ago, the investment return would now have become worth 33.97 lakh. 

The stock has gained 66.57% over the past five years and 39.15% over the past year. The stock has appreciated 21.13% YTD so far in 2022. On the NSE, the stock had touched a 52-week-high of 10,222.95 on (08-September-2022) and a 52-week-low of 6,876.50 on (20-June-2022) indicating after creating a new 52-week-high on Thursday the stock is trading 47.89% above the low. At today’s closing price the stock was seen trading above 5 days, 10 days, 20 days, 50 days, 100 days and 200 days Exponential Moving Average (EMA). Q1FY23 results of ZF Commercial Vehicle Control Systems India LtdOn a standalone basis, the company reported net sales of 798.42 Cr in Q1FY23 compared to 491.91 Cr recorded in Q1FY22, which represents a YoY growth of 62%. The company reported total expenses of 723.48 Cr in Q1FY23 compared to 472.96 Cr in Q1FY22, representing a YoY growth of 52%. The company’s profit before tax (PBT) jumped 179% YoY from 30.85 Cr in Q1FY22 to 86.08 Cr in Q1FY23 and the profit after tax (PAT) or net profit grew by 191% YoY from 21.38 Cr in Q1FY22 to 62.40 Cr recorded in the quarter ended June 2022.  Should you buy the shares of ZF Commercial?The research analysts of the broking firm ICICI Securities have said “ZFCV share price has grown at ~12% CAGR from ~ 5,640 in September 2017 thereby outperforming Nifty Auto index in that time. We retain BUY on ZFCV amid cyclical upswing in CV space with ZFCV a key beneficiary, solutions in EV domain and advance technologies supporting its quest for content/vehicle increase. Upgrading our estimates, we now value the company at 12,160 i.e. 54x P/E on FY24E EPS (earlier target price 10,530).” Amid cyclical recovery, ZFCV build ~29.8% sales CAGR over FY22-24E, and with potential kit value pegged at ~3x from current levels of ~ 45,000- 48,000/unit along with input cost cooling off and premium product offering, margins are seen inching up to the 15% mark by FY24E, are the two key triggers for future price performance of ZF Commercial, said the research analysts of ICICI Securities. They further added that “The company is a key beneficiary of the ongoing CV cyclical upswing amid greater infra spends by the government with annual YTD wholesales at market leader Tata Motors up ~60% YoY in FY23E and August 2022 wholesales witnessing MoM recovery especially in the M&HCV truck space. In Q1FY23 conference call, ZFCV spelt out its prowess in technologically advanced products for M&HCV space like ADAS, fleet management service, EV parts for E-Bus, ESC, T-EBS among others. Recent offerings from some OEMs depict the same. We believe this bodes well for the company in maintaining its leadership position and gradually increasing content/vehicle.” Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
   

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Multibagger stock to issue bonus shares in 1:2 ratio. Details here

Multibagger stock to issue bonus shares in 1:2 ratio. Details here

Shivalik Bimetal Controls Ltd’s had announced that its board earlier this week approved the issue of bonus equity shares in the ratio of 1:2, which is subject to approval of the shareholders in the forthcoming Annual General Meeting (AGM) of the company. Bonus shares are fully paid additional shares issued by a company to its existing shareholders. “We wish to inform you that the Board of Directors of the Company in its meeting held today i.e 29th day of August, 2022, has inter alia considered and approved the following(s): 1. Issue of bonus shares in the ratio of 2:1, i.e., one bonus equity shares of Rs. 2/- each for every Two fully paid up equity shares held, as on the record date. The record dates ascertain members eligible to receive will be fixed in due course,” the company informed in an exchange filing on Monday. The company said that the bonus shares will be issued out of free reserves and securities premium account of the company available as at March 31, 2022. As on March 31, 2022, aggregate amount of free reserves, and securities premium account is 17,949.8 lakhs. The estimated date by which such bonus shares would be credited/dispatched is within 2 months from the date of board approval i.e. by 28th October, 2022, it added. The Board has decided that 38th Annual General Meeting of the Company will be held on Tuesday, 27th Day of September, 2022 at 10.30 AM and the cut-off date for determining the voting rights for E-voting on the resolutions listed in the Notice of Annual General Meeting will be 20th September, 2022. Shivalik Bimetal Controls Ltd is a company specialized in the joining of material through various methods such as Diffusion Bonding / Cladding, Electron Beam Welding, Solder Reflow and Resistance Welding. Our present program includes Thermostatic Bimetal, Clad Metal, Spring Rolled stainless Steels, Electron Beam Welded Material with multi- Gauge and Multi- Materials strips and Thermostatic Edge- Welded Strips for a board spectrum of industries.
Shivalik Bimetal Controls shares have given multibagger return of more than 248% in a year’s period, whereas the multibagger stock has surged over 51% in 2022 (YTD) so far.

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Multubagger debt-free stock is 71% away from 52-week-high: Should you buy?

Multubagger debt-free stock is 71% away from 52-week-high: Should you buy?

With a market worth of 43,443.82 crore, Schaeffler India Ltd. is a large-cap corporation that operates in the automotive and auto component industries. Under the brand names INA, the firm produces a variety of needle roller bearings and components for shift systems, valve trains, chain drive systems, and front accessory drive systems. Additionally, the firm manufactures dual mass flywheels and clutch systems for tractors, light commercial vehicles, heavy commercial vehicles, and passenger automobiles under the LuK brand. With four manufacturing facilities and 11 sales offices, Schaeffler has a sizable footprint in India thanks to the three well-known brand names FAG, INA, and LuK. According to data from Value Research, the company is now debt-free. Following the release of Q1FY23 earnings, the brokerage firm Sharekhan assigned the shares of Schaeffler India a hold recommendation with a target price of Rs. 2,800. Sharekhan has said in a note that “Schaeffler India Limited (SIL) reported another strong quarter, beating our estimates on all fronts, driven by robust growth across its business verticals. Revenues, EBITDA and PAT beat were ahead of estimates by 6.2%, 7.4% and 7% respectively. Overall, the company continues to maintain its sales and profitability growth. Revenue, EBITDA, and PAT grew by 41.8% y-o-y, 55.4% y-o-y, and 64.5% y-o-y, respectively, in Q2CY22. SIL’s sales mix remains robust with automotive, industrial, and exports contributing 48%, 37%, and 16%, respectively, during the quarter. EBITDA margin contracted 130bps q-o-q to 18.4% in Q2, on back of commodity price inflation. The company’s management has given a positive outlook for its business, led by volume growth across its verticals. SIL would benefit from the industrial and automobile aftermarket segments, strong growth traction in export markets, and better prospects for the bearings business. In terms of valuation, the stock is trading at premium to its historical average at a P/E of 36x and EV/EBITDA of 23x its CY2023E estimates.” The brokerage has claimed that “SIL has been consistently outperforming the industry’s growth rate, driven by its technological edge and established relationships with leading OEMs/clients in India and globally. After a dip in performance led by COVID-induced lockdown in Q2CY2020, the company’s performance has improved steadily, aided by a strong recovery in the automotive segment and industrial segment. Exports continue to do well and contributed ~16% to revenue in Q2CY22. We expect a robust performance by the company going forward, driven by normalisation of economic activity, improvement in content per vehicle, strong growth in the wind power and railways businesses, and launch of new products in the aftermarket segment. We expect its earnings to report a 33.6% CAGR during CY2021-CY2023E, driven by a 28% revenue CAGR and a 110-bps improvement in EBITDA margin from 17.5% in CY2021 to 18.6% in CY2023E. In terms of valuation, the stock is trading at a premium to its historical average at a P/E of 36x and EV/EBITDA of 23x its CY2023E estimates. Given limited upside and expensive valuation, we downgrade the rating to Hold with a revised PT of Rs2,800.” On the NSE, the stock closed today at 2,770.00 apiece, up by 7.18% from its previous close of 2,584.45. The stock had touched a 52-week-high of 9,700.00 on 18-January-22 and touched a 52-week-low of 1,598.00 on 16-February-22 which indicates that at the current share price the stock is trading 71.44% below the 52-week-high and 73.34% above the 52-week-low. In the last 1 year, the stock has delivered a multibagger return of 101.80% and on a YTD basis, the stock has surged 51.36% so far in 2022.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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