Auto Ancillary Stock Issues 1:1 Bonus Shares After Gaining 220% In 1 Year

Small-cap firm Shriram Pistons & Rings operates in the auto ancillary industry. The company has two manufacturing facilities in Ghaziabad, Uttar Pradesh, and one in Pathredi (Rajasthan), making it the largest producer of pistons, pins, rings, and engine valves in India. is the leading exporter of Pistons and Rings from India to marquee clients, including Perkins, Fiat Power Train, Cummins, Yanmar, BMW, Daimler, BRP Rotax, Kubota, Wabco, Cummins, etc. Its products are offered to almost all OEMs and Aftermarkets under the brands SPR and USHA.Despite being a multibagger stock, it has announced bonus shares for its eligible shareholders in 1:1 ratio.

"The Board of Directors of the Company it its meeting held on Tuesday, June 13, 2023 recommended issuance of Bonus Equity Shares to the shareholders of the Company in the ratio of 1:1 i.e., 1 (one) equity share of Rs. 10/ - (Rupees Ten) each fully paid up for every 1 (One) existing equity share of Rs. 10/ - (Rupees Ten) each fully paid up held as on the record date, subject to the approval of the shareholders.

Further, the shareholders in their meeting held on Thursday, July 6, 2023 approved issuance of above Bonus Equity Shares. Pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Company has fixed Monday, July 24, 2023 as the Record Date for the purpose of determining the list of equity shareholders of the Company, whose names appear in the Register of Members maintained by the Company's Registrar and Transfer Agents / List of Beneficial Owners, as received from National Securities Depository Limited and Central Depository Services (India) Limited, who will be entitled for issue and allotment of bonus equity shares in the proportion of 1 (one) equity share of Rs. 10/- (Rupees Ten) each fully paid-up for every 1 (one) existing equity share of Rs. 10/- (Rupees Ten) each fully paid-up of the Company," said Shriram Pistons & Rings in a stock exchange filing.

The company reported a consolidated net income of Rs 717.31 Cr in March 2023 quarter compared to Rs 597.44 Cr in March 2022 quarter. Its net expenses stood at Rs 589.83 Cr in Q4FY23 as against Rs 527.55 Cr in the same quarter of FY22. The company's EBIT reached Rs 127.48 Cr compared to Rs 69.89 Cr in the corresponding quarter of FY22. Shriram Pistons & Rings said its net profit was Rs 90.96 Cr in Q4FY23 compared to Rs 50.37 Cr in Q4FY22.

On Thursday, the shares of Shriram Pistons & Rings opened on the NSE at Rs 2,231 apiece compared to the previous close of Rs 2,221.10. The stock made a 52-week-high of Rs 2,391.80 on (13-July-2023) and a 52-week-low of Rs 692.00 on (02-Aug-2022), indicating that at the current market price of Rs 2,268, the stock is trading 227.74% above the 1 year low and 5.17 below the recent 1 year high.

The stock price climbed from Rs 590.10 to the current market price during the past three years, resulting in a multibagger return of 305%. The stock price jumped from Rs. 700.85 to the current market price over the past year, resulting in a multibagger return of 223%. The stock has produced a multibagger return over the past three months of 102.45% and has gone up by 36% during the past month. During Q4FY23, the company recorded promoter shareholding of 46.75% and public stake of 53.25%.