5 Stocks Declaring Bonus Shares and Stock Splits in January 2025

2024 was a whirlwind year for corporate actions, with companies showering shareholders with bonuses, splits, and dividends.

As 2025 kicks off, the momentum shows no signs of slowing, with January already set to be buzzing with companies going ex-bonus and ex-split.

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 January 2025.

#1 Getalong Enterprise

First on the list is Getalong Enterprise.

Getalong Enterprise Ltd offers comprehensive tax solutions and allied services. The company provides a wide range of services including tax advisory, management.

The company during the Extraordinary General Meeting (EGM) held on 13 December 2024 approved stock split in ratio of 1:10. This means each equity share with a face value of Rs 10 will be split into 10 equity shares with a face value of Re 1 each, fully paid up.

The record date for the same is 2 January 2025.

Over the past 1 year, the shares of the company have given multibagger returns, jumping 162.5%.

Going forward, the company plans to improve its financial performance.

For more details, see the Getalong Enterprise Ltd. company fact sheet and quarterly results.

#2 Kamdhenu

Next on the list is Kamdhenu.

The company manufactures, markets, and distributes steel and paint products. Its product lineup includes TMT bars, structural steel, binding wire, colour-coated sheets, plywood, and paints.

Kamdhenu operates under a franchisee business model and has a network of over 11,500 dealers and distributors across India.

The company's board of directors announced the stock split in the ratio 1:10. This means, each share with a face value of Rs 10 into 10 smaller shares, each with a face value of Re 1.

The company's board has set 8 January 2025 as the record date for this corporate action.

The steel company is going for the split in order to enhance liquidity of its equity shares and to encourage participation of small investors by making the shares more affordable to invest.

For the September 2024 quarter, the company reported the total income of Rs 1,961.7 m, up from Rs 1,865.9 m.

The net profit for the quarter came to Rs 160 m.

Looking ahead, the company aims to double its sales in the next 4-5 years through franchisees and in-house manufacturing.

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

#3 KPI Green Energy

Next on the list is KPI Green Energy.

KPI Green Energy has evolved into a prominent renewable power developer in Gujarat. Operating as an Independent Power Producer (IPP) under the larger KP Group, the company has built a strong portfolio of solar and hybrid solar-wind projects.

On 14 November 2024, KPI Green Energy announced a bonus share issue in the ratio of 1:2. This means shareholders will receive one additional equity share of Rs 5 face value for every two existing shares held.

The record date for this issue is set for 3 January 2025.

This marks the third time the company has announced a bonus issue. The first bonus issue was carried out in 2023, where the company issued shares in a 1:1 ratio.

For the quarter ending September 2024 quarter, KPI Green Energy delivered an impressive 67.4% year-on-year (YoY) growth in revenue, reaching Rs 3.6 billion (bn) compared to Rs 2.2 bn in the same quarter last year.

Net profit for the quarter also doubled, rising to Rs 700 million (m) from Rs 350 m a year earlier.

KPI Green Energy is poised for substantial growth, with plans to expand its renewable energy capacity from over 346 MW to 1,000 MW by 2025.

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

#4 Enser Communications

Next on the list is Enser Communications.

The company specialises in providing Business Process Management (BPM) services to businesses across diverse sectors including insurance, e-commerce, education, and travel.

The company offers a range of services that aim to enhance operational efficiency and drive business growth, focusing on delivering high-quality customer service solutions.

The company in its meeting on 14 December 2024 approved bonus shares in the ratio of 1:1. This means that the shareholders will receive one additional bonus share for every share held.

The record date for the same is 3 January 2025.

According to half-yearly results, the net sales increased by 116% to Rs 390.2 m and net profit increased by 127% to Rs 48.5 m in H1FY25.

The company has not announced any concrete future plans, but it could potentially look to broaden its service offerings.

For more details, see the Enser Communications Ltd. company fact sheet and quarterly results.

#5 Shriram Finance

Last on the list is Shriram Finance.

This flagship firm of the Shriram group is well-known in the consumer finance, life insurance, general insurance, stock broking, and distribution industries.

With assets under management (AUM) over Rs 2.43 trillion (tn), Shriram Finance is among the largest non-banking finance companies (NBFC) in India.

In October, the board of Shriram Finance's had approved the sub-division of equity shares in the ratio of 5:1, meaning each share will split into 5 shares.

The company has fixed 10 January 2025 as the record date for the same.

Shriram Finance entered the benchmark Nifty in February this year.

For the September 2024 quarter, its net interest income jumped 16.4% to Rs 56.1 bn, up from Rs 48.2 bn a year back. Its net profit jumped 18.3% to Rs 20.7 bn.

Further, on 20 December 2024, Shriram Finance reaffirmed its dedication to green financing by merging all of its green finance initiatives under the name Shriram Green Finance, which is focused on financing projects other than electric vehicles.

With the goal of creating a strong green finance portfolio by funding EVs, battery charging stations, renewable energy products and solutions, energy-efficient machinery, etc., Shriram Green Finance unifies the green finance industry.

Over the next three to four years, the company aims to reach an Asset Under Management (AUM) of Rs 50 bn for this business.

For more details, see the Shriram Finance company fact sheet and quarterly results.

Conclusion

Investing in stocks that declare bonus shares and stock splits can be attractive to some investors, as these actions often boost liquidity, enhance market sentiment, and make the stock more accessible to a broader investor base.

However, it's important to note that they don't guarantee profitability. A key consideration is the potential dilution of earnings per share if the company's profits fail to grow proportionally.

To make informed decisions, it's crucial to assess the company's fundamentals, including its financial performance, corporate governance practices, and growth prospects, rather than relying solely on the allure of bonus shares and stock splits.

Investors should also evaluate dilution risks and their own financial goals before proceeding.

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...