4:1 Bonus Issue Record Date On January 3; Buy Textile Stock To Be Eligible For 4 Free Shares On 1?

Bonus Issue December 2024: Garware Technical Fibres Ltd, a textile company, has announced massive bonus shares in the ratio of 4:1. Meaning four free shares will be rewarded to eligible investors on their existing 1. To be eligible, investors would require to hold this smallcap stock by end of the record date which is due later this week. Hence, Garware will be in focus accordingly.

Garware Technical Fibres Share Price:

The stock price stood at Rs 4662.05 apiece on BSE, last week on December 27, up by 4.6% with a market cap of Rs 4662.05 crore. The stock is closing its gap towards a 52-week high of Rs 4,925.80 apiece, while its 52-week low is at Rs 3,116.10 apiece. YTD, the stock jumped by 39% on BSE so far.

Garware Technical Fibres Ltd Bonus Issue:

The company has announced the issuance of 7,94,12,676 fully paid-up Bonus Equity Shares of Rs. 10/- each in the ratio of 4:1 i.e., 4 (Four) new fully paid-up bonus equity shares of Rs. 10/- each for every 1 (One) existing fully paid-up equity shares of Rs. 10/- each held by the members of the Company as on Friday, January 03, 2025 ("Record Date").

Hence, to be eligible, investors should hold Garware Technical stock by the end of the record date. The upcoming bonus issue comes after the company paid up to Rs 3 dividend per share with an ex-date on September 12, 2024.

Bonus shares are one of the many corporate actions that listed companies announce on several occasions. Bonus shares are like incentives which are free of cost given to investors. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.

Garware Technical Fibres Ltd Fundamentals:

As per Trendlyne data, the consensus recommendation from 1 analyst for Garware Technical Fibres Ltd. is STRONG BUY. EPS is expected to grow by 12.6% in FY25. The average 1-year target price is at Rs 4,600 apiece.

Fundamentals of the stock as per Trendlyne are:

- Price to Earning Ratio is 41.04, lower than its sector PE ratio of 66.83.

- Stock Price rose 38.47% and outperformed its sector by 4.07% in the past year.

- Debt to Equity Ratio of 0.1 is less than 1 and healthy. This implies that its assets are financed mainly through equity.

- Return on Equity(ROE) for the last financial year was 16.87%, in the normal range of 10% to 20%.

- Mutual Fund Holding increased by 0.11% in the last quarter to 9.56.

- Promoter Share Holding stayed the same in the most recent quarter at 53%.

- Interest Coverage Ratio is 18.29, higher than 1.5. This means that it is able to meet its interest payments comfortably with its earnings (EBIT).

- Promoter Pledges are zero.

About Garware Technical Fibres:

Established in 1976, the company today is a multi-divisional, multi-geographical technical textiles company and is known for providing world class innovative solutions in high performance aquaculture cage nets, fishing nets, sports nets, safety nets, agricultural nets, coated fabrics, polymer ropes and geosynthetics.