Multibagger PSU company likely to announce bonus shares, stock split, dividend & buyback!

The stock gave multibagger returns of 140 per cent in just 1 year whereas the BSE Sensex Index was up by 18 per cent in the same period.

Balmer Lawrie & Company Ltd, a central public sector undertaking under the Ministry of Petroleum and Natural Gas since 1972, offers a wide range of services in India. They manufacture industrial packaging, greases & lubricants, and leather chemicals. They also operate logistics infrastructure like container freight stations and warehouses and provide logistics services like freight forwarding and project logistics. Additionally, Balmer Lawrie offers travel and vacation services including air ticketing and hotel booking, and cold chain services for temperature-controlled transportation. They even have a dedicated unit handling oilfield services.

The company is informing its shareholders that a board meeting will be held on May 28, 2024, to discuss several important matters. First, the board will review and consider approval of the audited financial results for the fourth quarter and full fiscal year ending March 31st, 2024. Additionally, they will consider recommending a dividend payout on the company's equity shares for that same fiscal year, subject to shareholder approval at the upcoming Annual General Meeting. Finally, the board will be reviewing their compliance with the Ministry of Finance's Capital Restructuring Guidelines for Central Public Sector Enterprises (CPSEs). This review may involve analysis and discussion of potential capital restructuring actions such as buying back shares, issuing bonus shares, or splitting existing shares.

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Previously, Balmer Lawrie and Company Ltd had approved a bonus issue in the ratio of 3:4 in 2013, 3:1 in 2016, and 1:2 in 2019.

Balmer Lawrie Investment Ltd. has a complex ownership structure. The information you provided seems to indicate a circular ownership situation. While it appears that Balmer Lawrie Investment Ltd. owns a majority of its stake (61.80 per cent), this likely refers to internal holdings within the company itself. Ultimately, the controlling interest lies with the President of India, who holds a significant share (59.67 per cent) of Balmer Lawrie Investment Ltd. This structure is common for government-controlled companies in India.

The company has a market cap of over Rs 5,000 crore and has been maintaining a healthy dividend payout of 80.2 per cent. The stock gave multibagger returns of 140 per cent in just 1 year whereas the BSE Sensex Index was up by 18 per cent in the same period. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.