Top 5 Stocks Declaring Bonus Shares and Stock Splits in December 2024

Imagine being rewarded just for holding onto your investments, sounds appealing. Corporate actions are essentially those rewards that companies offer their shareholders.

These rewards can take various forms, such as additional shares, dividends, bonus shares, or stock splits.

Bonus shares and stock splits are the commonly discussed corporate actions, frequently making headlines as companies use them to increase the number of their traded shares.

When a company issues bonus shares or conducts a stock split, shareholders enjoy an increase in their share count without any additional cost.

However, this doesn't significantly alter their overall wealth, as the rise in share numbers is balanced by a corresponding drop in share price post-bonus or post-split.

In today's article, we'll spotlight five companies to keep an eye on for bonuses and stock splits in December 2024.

#1 Diamond Power Infrastructure

First on the list is Diamond Power Infrastructure.

The company offers a diverse range of products and services primarily in the electrical equipment sector. Their key offerings include Conductors related to overhead and underground conductors for power transmission and more.

Diamond Power Infrastructure approved a sub-division of one equity share of the face value of Rs 10 each into 10 shares of the face value of Re 1.

This is the first time the company has split its shares. The stock split ratio is 1:10. The record date for the same is 3 December 2024.

Looking at the company's financials, Diamond Power Infrastructure reported a revenue of Rs 2.5 billion (bn) for Q2 FY25, marking a 235% increase from Rs 745.5 million (m) in the same quarter last year. However, net profit rose by 68% to Rs 39.7 m, up from Rs 23.6 m in the previous year's quarter.

Going forward the company plans to expand its capacity of cables.

For more details, see the Diamond Power company fact sheet and quarterly results.

#2 Tara Chand Infralogistics Solutions

Next on the list is Tara Chand Infralogistics Solutions.

Tara Chand Infralogistic Solutions Limited is engaged in providing comprehensive infrastructure solutions to organizations.

The company operates through three verticals: Warehousing & Multi-modal Transportation, Construction Equipment Rental, and Turnkey Infra-Project Execution.

The company has announced a stock split of each fully paid-up equity share having a face value of Rs 10 each be subdivided into 5 fully paid-up equity shares having a face value of Rs 2. It has fixed Thursday, 5 December 2024, as the record date for the split.

Looking into Tara Chand Infralogistic Solutions financial performance, its revenue rose 33% YoY from Rs 422.1 m to Rs 561.6 m in September 2024 quarter.

During the same period, net profit magnified by 133% YoY, from Rs 26.9 m to Rs 72.2 m.

Its equipment rentals recently added an 800-ton crane from Zoomlion, the largest in its fleet, and introduced India's tallest aerial platform (68 meters) for a steel plant project. These enhancements support its 300+ machine fleet, boosting capacity across cranes, piling rigs, and work platforms.

The company executed a record capital expenditure of Rs 943 m in FY25 and aims to reach Rs 1,000 m by December.

This unprecedented investment supports ongoing growth initiatives, with plans to deploy the remaining amount within the financial year's second half. The company is optimistic about strong demand in the cement and steel sectors.

Anticipating higher Q3 and Q4 performance, it aims to expand into renewable energy, targeting solar and wind, and expects to maintain a 30% growth in FY25.

For more details, see the Tara Chand Logistics Solutions company fact sheet and quarterly results.

#3 Global Education

Next on the list is Global Education.

An ISO-certified educational service provider and consultancy firm, Global Education is dedicated to providing quality consultancy services and skill development programs to educational institutes.

The company has announced the stock split in the ratio of 5:2, meaning the sub-division of one existing equity share with a face value of Rs 5 each into two equity shares with a face value of Rs 2 each. The company has fixed 10 December 2024, as the record date for the split.

Coming to its financials, its income increased by 68.6% YoY to Rs 256.6 m and net profit increased by 50.9% YoY to Rs 106.5 m in the September 2024 quarter.

It plans to further enhance its skill development programs to meet the evolving needs.

For more details, see the Global Education company fact sheet and quarterly results.

#4 Shradha Infraprojects

Next on the list is Shradha Infraprojects.

Shradha Infraprojects is a real estate infrastructure development company established in 1987. Primarily operating in Nagpur, India, SIPL has a strong presence in residential, commercial, and hospitality sectors, offering mixed-use and single-segment developments.

The company has considered subdivision of existing face value of Rs 5 each fully paid-up, be split into such number of equity shares having face value of Rs 2 each fully paid-up. The board fixed the record date for the stock split as Tuesday, 10 December 2024.

Its sales declined 59.9% to Rs 123.5 m in the September 2024 quarter. Meanwhile, its net profit rose 13.6% to Rs 38.5 m in the September 2024 quarter.

Shradha Infraprojects is building a four-lane highway in Uttar Pradesh that will connect NH-24 to NH-87. The project will include bridges, culverts, and safety features like signage, guardrails, and road markings.

For more details, see the Shradha Infra company fact sheet and quarterly results.

#5 Achyut Healthcare

Last on the list is Achyut Healthcare.

Achyut Healthcare Limited, an India-based company, specialises in trading pharmaceutical products, medical devices, and active pharmaceutical ingredients (APIs).

The company operates across both domestic and international markets, with a presence in regions such as the United Arab Emirates (UAE), Kenya, and Nigeria.

The Board of Directors has approved two key proposals aimed at boosting liquidity and enhancing shareholder value. The first involves a stock split, where each equity share with a face value of Rs 10 will be subdivided into ten equity shares with a face value of Re 1 each.

The second is a bonus issue in a ratio of 4:10, meaning shareholders will receive four new equity shares with a face value of Re 1 each for every ten fully paid-up equity shares they hold. The record date for both actions is set for December 10.

In its Q2FY25 half-yearly results, Achyut Healthcare reported a 44% increase in net sales to Rs 21.3 m and a 35% rise in net profit to Rs 14.8 m compared to Q2FY24.

Going forward, the company plans to expand its market reach to strengthen its position in the pharmaceutical trading industry.

For more details, see the Achyut Healthcare company fact sheet and quarterly results.

Conclusion

Investing in stocks that announce bonus shares and stock splits can be an appealing option for some investors.

These actions can increase liquidity, generate positive market sentiment, and potentially make the stock more affordable for a wider range of investors.

However, it does not guarantee profitability. One drawback to consider is the potential dilution of earnings per share if the company's profits do not increase.

Therefore, it's important to consider the company's fundamentals, such as financial performance and growth prospects, before making investment decisions solely based on bonus shares and stock splits. Dilution concerns and individual circumstances should also be considered.

For the companies with long history of issuing bonus shares, check out 5 Indian companies which have consistently declared bonus shares.

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...