Top 3 Stocks Declaring Bonus Shares in December 2023

Investing is a risky endeavour, like anything that involves the future.

After all, no one knows what's going to happen tomorrow, with recent months witnessing heightened volatility.

From lingering inflation concerns and escalating geopolitical tensions, there are plenty of risk factors to consider as 2023 draws to a close.

In this troubling economic outlook, investors usually opt to choose dividend stocks. They also consider companies declaring bonus shares as viable options.

The allure of receiving something for free, coupled with the satisfaction of earning a bonus, makes bonus share issues a welcome move for investors.

Bonus shares are free shares that shareholders receive against shares they currently hold.

For investors in search of such opportunities, here are three stocks declaring bonus shares in December 2023.

#1 Pooja Entertainment

First on the list is Pooja Entertainment.

Pooja Entertainment is one of India's largest film production and distribution companies, founded in 1995.

On 28 October 2023, the board approved the proposal to recommend bonus shares in the ratio of 6:1, which means six equity shares of Rs 10 each for every one equity shares of Rs 10.

The board has fixed 8 December 2023 as the record date to determine the eligibility of shareholders.

For the September 2023 quarter, the company reported consolidated total income of Rs 146 million (m), up 46% when compared on a YoY basis.

Net profit came in at Rs 3 m in the latest quarter, down 25%. This decline can be attributed to an increase in operating expenses.

Looking ahead, the company is planning to create itself as a large-scale film production company.

For more details, see Pooja Entertainment company fact sheet and quarterly results.

#2 Dhyaani Tile

Second on the list is Dhyaani Tile.

Dhyaani Tile and Marblez is an India-based company, which is engaged in the trading of vitrified tiles used primarily for flooring solutions.

The company's operations are divided into two product categories: double-charge vitrified tiles and glazed vitrified tiles.

The company's board announced bonus shares on 31 August 2023.

It will issue bonus shares in a ratio of 9:5. This means nine new bonus shares for every existing five shares in the company.

The record date for the same is 7 December 2023.

For the September 2023 quarter, the company reported an 81% YoY rise in revenue at Rs 10.5 m. The net profit for the quarter came in at Rs 0.2 m, up 200% from a year ago.

The company is planning to leap into the artificial intelligence (AI) space, which could be a game changer.

For more details, see the Dhyaani Tile company fact sheet and quarterly results.

#3 Alphalogic Industries

Lats on the list is Alphalogic Industries.

Alphalogic Industries is an Indian company that manufactures storage systems. The company offers a wide variety of storage systems.

The board of directors of Alphalogic Industries on 18 October 2023 recommended a bonus issue in the ratio of 1:1. That means one share of Rs 10 each for every one share held.

The record date for the same is 1 December 2023.

Furthermore, the board is planning to consider and approve an increase in its authorized share capital.

For the September 2023 quarter, the company reported a revenue of Rs 19.7 m and a net loss of Rs 0.4 m.

Going forward, the company plans to introduce new products and increase its reach.

For more details, see the Alphalogic Industries company fact sheet and quarterly results.

Conclusion

Investing in stocks that announce bonus shares can be an attractive proposition for investors. Bonus shares can enhance shareholder value by increasing the number of shares held without diluting ownership.

Additionally, some companies that issue bonus shares have a history of profitability, increasing the likelihood of future dividend distributions, which can provide additional income to shareholders.

While bonus shares can be attractive, investors should consider other factors such as the company's overall financial health, growth prospects, and market conditions.

Dilution concerns and individual circumstances should also be considered.

For companies with a 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...