Bonus issue: Amid weak market sentiments, shares of this BSE 500 company witnessed heavy demand on the bourses today

While the frontline index S&P BSE Sensex is down by nearly 0.5 per cent, this company has surged nearly 7 per cent today.

The shares of GMM Pfaudler Ltd, an S&P BSE 500 company, have rallied over 6 per cent on the bourses today. This rally came on the back of the bonus issue of shares, for which the ex-date is today.  

The company announced the decision on bonus issue in a meeting held on 25 May 2022. As per the meeting, the company’s board had considered and recommended the issue of bonus equity shares in the ratio of two new equity shares for every one existing equity share held.  

Even in the pre-opening session today, the company’s shares were in heavy demand. During this time, the company’s shares rallied 4.58 per cent to trade at Rs 1,449 apiece.  

Looking at the company’s financials, in Q4FY22, the company’s net revenue increased 20.26 per cent YoY to Rs 228.54 crore. However, owing to a steeper rise in expenses, the PAT declined 35.36 per cent YoY to Rs 20.35 crore.  

Currently, the company is trading at a TTM PE of 64.05x against the industry PE of 19.47x. In FY22, the company delivered an ROE and ROCE of 21.36 per cent and 26.05 per cent, respectively.  

At 12.08 pm, the shares of GMM Pfaudler Ltd were trading at Rs 1,474.75, an increase of 6.44 per cent from the previous closing price of Rs 1,385.55 on BSE. As against this, the markets were down by around 0.5 per cent.