Double Dhamaka! 2:1 Bonus Share & 1:5 Stock Split Announced: Multibagger Engineering Stock with 4,500 Per Cent Returns in Just 5 Years
The stock has given multibagger returns of 167 per cent from its 52-week low of Rs 395 per share and a whopping 4,500 per cent in 5 years.
The Board of Directors at GTV Engineering Ltd has approved two significant corporate actions, both subject to shareholder approval via postal ballot. Firstly, they've sanctioned a sub-division/split of existing equity shares, changing the face value from INR 10 to INR 2 per share. The record date for this split will be determined after shareholder approval. Secondly, the Board has also approved a bonus share issue in a 2:1 ratio, meaning two bonus equity shares for every one existing equity share, to eligible shareholders on a yet-to-be-declared record date. This bonus issue will be effected through the capitalisation of the company's free reserves.
Incorporated in 1990, GTV Engineering Ltd operates a diversified business, specialising in both high-tech steel fabrication and the manufacturing of Whole Wheat Flour. In its Heavy Engineering division, the company serves as a crucial subcontractor, providing vital fabrication inputs to large engineering firms and undertaking manufacturing jobs for various infrastructural projects across sectors like power, minerals, cement, railways, and metros, with a capacity of 1,000 MT per month from its Mandideep unit. Additionally, GTV Engineering has a presence in Hydro Power Generation, owning and operating a unique 6MW underground small hydro power project in Himachal Pradesh. Complementing these segments, its Agro Foods Division, an ISO 22000:2015 certified facility in Gwalior, produces and packages staples such as atta, maida, dalia, suji, and besan
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The company has a market cap of over Rs 300 and has delivered good profit growth of 69 per cent CAGR over the last 5 years. The shares of the company have a PE of 29x, an ROE of 26 per cent and an ROCE of 28 per cent. The stock has given multibagger returns of 167 per cent from its 52-week low of Rs 395 per share and a whopping 4,500 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.