5 Stocks to Watch Out for Bonus Shares and Stock Splits in March 2023

Investing in the stock market can be a thrilling experience, but it can also be quite complex. As an investor, it's important to stay up to date on corporate actions that could impact your investments.

Two such corporate actions are bonus shares and stock splits, which can provide investors with opportunities to increase their holdings and potentially earn profits.

A bonus share is an additional share of stock that a company issues to its existing shareholders at no cost, based on the number of shares they already hold. This means that an investor who holds 100 shares of a company receiving a 1:1 bonus share will now hold 200 shares without having to pay anything for the new shares.

On the other hand, a stock split is when a company divides its existing shares into multiple shares, while maintaining the overall value of the shares. For example, a company that has 1,000 shares trading at Rs 100 per share may decide to split its shares into 2,000 shares trading at Rs 50 per share.

Bonus shares and stock splits are exciting events for investors because they can result in a larger number of shares at a lower price per share. This can provide investors with an opportunity to increase their holdings and potentially profit from the stock's future performance.

In this article, we'll take a look at five companies that are expected to announce bonus shares or stock splits in March 2023.

#1 Jayant Infratech

First on this list is Jayant Infratech, a smallcap company.

It is engaged in railway infrastructure development, involving the design, supply, and commissioning of single phase traction overhead equipment.

The company's board of directors on 20 January 2023 approved the proposal to recommend bonus shares in the ratio of 2:1. This means two bonus shares of Rs 10 each for every one existing share.

The board has fixed 1 March 2023 as the record date to determine the eligibility of shareholders.

The securities premium account balances will be used to pay for the bonus issuance of Rs 64.7 million (m).

For the September 2022 quarter, Jayant Infratech reported a revenue of Rs 18.7 m. The net profit for the same period came in at Rs 1.2 m.

The company is a newly listed company and started to trade on bourses in 2022.

Jayant Infratech's initial public offering (IPO) was open from 30 June 2022 till 5 July 2022. This was an SME IPO which received four times subscription.

Since its listing on exchanges in July 2022, the share price has rallied over 350%, giving multibagger returns.

For more details, see Jayant Infratech company fact sheet and quarterly results.

#2 Captain Pipes

Second on the list is Captain Pipes.

The company is one of India's prominent manufacturers and exporters of PVC pipes. It provides a variety of piping solutions in drainage, plumbing, and agriculture.

On 27 January 2023, the board decided to split the shares in a ratio of 1:10. This means each equity share with a face value of Rs 10 will be divided into ten equity shares with a face value of Rs 1.

The board of directors, in the same meeting also approved the proposal to recommend the issue of bonus shares in the ratio of 2:1. This means two bonus shares for every one existing share.

The board has fixed 2 March 2023 as the record date for the split and bonus issue.

For the September 2022 quarter, the company's revenue rose marginally by 3% YoY to Rs 42.9 m. It reported a net loss of Rs 0.2 m. This decline was due to increase in salary expenses and increase in raw material costs.

For the upcoming quarter, the company is looking forward to increasing its reach in international markets.

For more details, see the Captain Pipes company fact sheet and quarterly results.

#3 Astral

Third on the list is Astral.

Astral is a manufacturer and provider of CPVC piping and plumbing systems in India.

Its products include CPVC pipes and fittings for hot and cold-water plumbing systems and CPVC industrial piping systems for the transportation of hazardous and highly corrosive chemicals.

The company's board announced bonus shares on 7 February 2023.

It will issue bonus shares in a ratio of 1:3. This means one bonus share for every three existing shares.

The record date for the same is 14 March 2023.

For more details about the company's bonus, check out our editorial - Bonus shares alert: This largecap stock will trade ex-bonus soon.

For the December 2022 quarter, the company's revenue was up 15% YoY to Rs 12.7 billion (bn) from Rs 10.9 bn in the same quarter last year.

Net profit fell 27% YoY and came in at Rs 930 m from Rs 1,273 m in the December 2021 quarter.

This decline in profit was on the back of margin pressure faced by the company's vertical due to the high-cost inventory of raw materials for both PVC and chemicals.

For the upcoming quarters, the company is planning to grow its reach in the paints segment with the acquisition of Gem Paints.

It is also planning to enhance its network in new areas and improve its distributor and dealer network.

For more details about the company, see the Astral Financial Factsheet and quarterly results.

#4 IIFL Wealth Management

Fourth on the list is IIFL Wealth Management.

IIFL Wealth Management (now known as 360 One Wam) is one of the leading wealth management companies in India and is part of the IIFL Group.

It provides transaction structuring and advisory services relating to financial products to its clients.

The company's board, on 19 January 2023, approved the stock split of the shares in a ratio of 1:2.

In addition to a split, the board has also approved the issue of bonus shares in the ratio of 1:1. This means one bonus share for every one existing shares.

For the December 2022 quarter, the company's revenue went up 10% YoY to Rs 4.2 billion (bn) from the same quarter last year.

Net profit rose 16% YoY and came in at Rs 1.8 bn from the December 2021 quarter.

This was on the back of healthy net flows of annual recurring revenue assets.

On the back of blockbuster results, the company has also announced a fourth interim dividend for the financial year 2022-23 at Rs 17 per equity share.

For the upcoming quarters, it is looking forward to expanding its presence to more cities to expand their presence to more cities.

For more details, see the IIFL Wealth Management company fact sheet and quarterly results.

#5 KP Energy

Last on the list is KP Energy.

KP Energy is a microcap company in India. It is a balance of plant (Bop) solution provider for the wind energy industry.

It engages in the process of wind farms, right from conceptualisation until the commissioning of the project and undertakes projects principally in Gujarat.

The company's board, on 5 January 2023, approved the stock split of the shares in a ratio of 1:2. This means that for every share of Rs 10 that shareholders hold, they will receive two shares of Rs 5 each.

The company reported a 52.2% YoY rise in revenues to Rs 711 m for the December 2022 quarter. The net profit for the quarter came in at Rs 117.4 m, up 69.3% YoY.

This jump was on the back of multiple project wins.

For the upcoming quarters, the company is looking forward to developing wind energy projects worth Rs 2.2 bn for the Aditya Birla Group.

For more details, see the KP Energy company fact sheet and quarterly results.

In conclusion

It's important to remember that these corporate actions do not guarantee success and investors should conduct thorough research and analysis before making any investment decisions.

It's important to consider the company's financial health, market trends, and other factors that could impact the stock's performance.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...