2:1 Bonus Shares Alert: This Pump Maker Rewards Shareholders Yet Again

Free shares?

Yes, you read that right. In the stock market, few things excite investors more than a bonus issue. It's the corporate equivalent of a festival giveaway-extra shares handed out simply for staying invested.

A bonus issue refers to the free shares given by a company to its existing shareholders. These are issued out of the company's accumulated earnings or reserves, and although they don't increase your investment value, they do increase the number of shares you hold.

Over the past few months, several companies have surprised shareholders with generous bonus declarations, sparking renewed interest and a flurry of market activity.

One such company that joined the list is Roto Pumps.

Here's all you need to know...

• On 17 May 2025, the Board of Directors of Roto Pump approved a bonus issue.
• The company has declared a bonus issue in the ratio of 2:1. This means eligible shareholders will receive 2 equity shares of face value Re 1 each for every 1 fully paid-up equity share of face value Re 1 held, as on the record date.
• These bonus shares, once allotted, will rank pari-passu with existing shares in all respects, except that they will not be eligible for the final equity dividend for the financial year ended 31 March 2025.
• The company has fixed 11 July 2025 as the record date to determine the eligibility for both the bonus shares and the final equity dividend for FY25.

Bonus Issue History

This is not the first time Roto Pump has rewarded its shareholders with bonus shares.

On 7 July 2023, the company issued bonus shares in a ratio of 1: 1, double the number of shares placed by eligible investors.

In addition, in 2024, the Roto Pump also executed a stock split in a ratio of 2: 1 along the pre-record date for 8 November 2024. The move again reduced the marked value of each share to 2 to 1, increased liquidity and made the stock more accessible to small investors.

Date	Type	Ratio
7 July 2023	Bonus Issue	1:01
8 November 2024	Stock Split	2:01

Source: Equitymaster

Is This a Sweet Deal?

While the idea of ??free shares is appealing, a bonus issue does not change the overall value of your investment. The number of shares increases, but the share price is adjusted accordingly.

In many cases, bonus issues produce short-term enthusiasm that fade until constant is supported by a constant commercial speed.

Therefore, while this step adds to the track record of the roto pump, investors should see it as a sign of confidence, not guarantee of returns.

A Look at the Financials

Roto Pump's revenue for March 2025 quarter came in at Rs 830.5 million (m), up 1.3% from Rs 819.3 m a year back.

Its EBITDA for the quarter came in at Rs 215.6 m, down marginally from Rs 216.7 m a year back. Meanwhile, net profit came in at Rs 124.4 m, down 1.6% from Rs 126.4 m.

For FY25, the company reported an 8.5% jump in revenue to Rs 2,979.4 m. Meanwhile, the net profit fell from Rs 394 m in FY24 to Rs 333.6 m.

Roto Pump's Financial Snapshot (FY22-24)

(Rs m, Consolidated)	FY22	FY23	FY24
Revenue	1,756	2,258	2,745
Revenue Growth (%)	38.8	28.6	21.6
Net Profit	302	331	394
Net Profit Margin (%)	17.2	14.7	14.4
Return on Equity (%)	22.5	20.4	20.2
Return on Capital Employed (%)	32.2	30.3	29.4

Source: Equitymaster

Its revenue grew at a CAGR of 29.5% over past 3 years. Its net profit grew at the CAGR of 29.1%. The company maintained strong financial health, with an average RoE of 21.1% and RoCE of 30.6%.

What Next?

According to a recent media report, Roto Pumps has set an ambitious revenue target of US$ 100 million by 2028.

The company plans to achieve this by expanding its reach across global markets, tapping into OEM demand, and leveraging its strong manufacturing and sales foundation.

A key part of this roadmap is the newly launched 'P' range of Progressive Cavity Pumps, designed to meet compact installation needs and replace European models without major modifications.

The product line is expected to strengthen the company's international competitiveness, especially in the replacement market.

In FY26, Roto Pumps aims to manufacture 15,000 pumps, of which 5,000 units will be from the new 'P' range. For this, the company has earmarked an investment of Rs 100 m.

How Shares of Roto Pumps have Performed Recently

The share price of Roto Pumps is down about 5% so far in 2025.

Over the past one year, the share price of the company has fallen about 16%.

The stock reached its 52-week high of Rs 361.9 on 4 July 2024 and its 52-week low of Rs 186.05 on 4 March 2025.

About Roto Pumps

Established in 1968, Roto Pumps is recognised as a pioneering manufacturer of progressive cavity pumps in India, offering dependable and effective pumping solutions for various sectors like wastewater, sugar, paper, oil & gas, and food & beverages.

The company specialises in producing industrial pumps, including progressive cavity and single and twin-screw types, often customised for high fluid viscosity applications in industries such as wastewater treatment, oil and gas, and marine.

Notably, the company exports its products to over 50 countries.

For more details, see the Roto Pumps company fact sheet and quarterly results. For a sector overview, read our engineering sector report.

You can also Compare Roto Pumps with its peers:

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