2nd Bonus Issue Next Week After 17 Yrs: Auto Stock Jumps 30.17% In 5-Days, Buy Or Sell?

Small cap company from the auto components & equipment industry, Bharat Seats Ltd shares saw a stunning rally of over 30% in last 1-week only as the Board of Directors are expected to make bonus share announcement on November 5, 2024. Last trading price of Bharat Seats shares on BSE is Rs 206.45 per share.

The stock recorded surge of 128% in last 2-years and 54% in last 1-year. This is the second bonus issue in the history of Bharat Seats Ltd so far while it has already recommended 24 dividends since 2001. The company’s market cap is Rs 648.25 crore. Bharat Seats is backed by Maruti Suzuki as the Promoter has 14.81% stake in the company. Check details below:

Should You Buy or Sell Bharat Seats Ltd Shares Ahead of Bonus Share?

According to A R Ramachandran, Independent SEBI Research Analyst, “”Bharat Seats is slightly bearish on the Daily charts with strong resistance at 216. A Daily close below support of 194 could lead to a target of 156 in the near term.”

Bharat Seats Shares Performance:

The stock slipped marginally by 2% in last 1-month, gained over 50% in last 1-year, and surged 171% in last 3-years. The 52-week high price of Bharat Seats shares on BSE is Rs 240.00 per share (as on 29/08/2024) and 52-week low price is Rs 125.65 per share (as on 14/03/2024). Bharat Seats shares offered return of over 19% in last 2-weeks, soared 29% in last 6-months, and gained 174% in last 3-years.

Bharat Seats To Declare Bonus Issue Next Week:

According to the BSE filing of the company issued as on October 29, 2024, “the meeting of Board of Directors of the Company is scheduled to be held on Tuesday, November 05, 2024, inter alia, to transact the following businesses:

i. to consider and approve the unaudited Financial Results of the Company for the quarter and six months ended September 30, 2024.

ii. to consider, subject to approval of members, increase in Authorized Share Capital of the Company and consequential amendment in the capital clause of Memorandum of Association of the Company.

iii. to consider issue of Bonus Shares to the Members of the Company.”

Bonus Share History Since 2001:

Bharat Seats offered 1 bonus since June 28, 2007. The last Bonus that the firm declared was in the ratio 1:1 with ex-date fixed as June 28, 2007.

Dividend History Since 2001:

Bharat Seats recommended 24 dividends since July 26, 2001. In last 1-year, Bharat Seats recommended an equity dividend amounting to Rs 1.60 per share. At the current share price of Rs 198.50, Bharat Seats offers a dividend yield of 0.81%.

Bharat Seats About:

Bharat Seats Ltd is a joint Venture of Suzuki Motor Corporation Japan, Maruti Suzuki India Ltd, Rohit Relan and Associates with the aim to manufacture complete seating systems and auto components. Currently Bharat Seats Ltd is engaged in the manufacturing of seating systems, carpets, NVH components and body sealing parts for four wheelers and two wheelers. Also seating system for Indian Railways. The company currently has 5 state-of-the-art manufacturing facilities spread across India. These facilities are equipped with latest manufacturing technologies & the company has set-up in-house NABL accredited testing & validation laboratory, according to its official website.

 

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