Bajaj Steel Bonus Issue: Bajaj Steel Industries, backed by the Bajaj Group, recently saw significant buying, causing its share price to reach a new 52-week high and hit the upper circuit limit of 20% on September 30. The stock will attract attention this week as the company’s board will meet on October 3 to discuss a bonus issue, which has contributed to the recent bullish trend.
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The share price closed at Rs 2,931.35 on the BSE, reflecting a 16.23% increase, with a market capitalization of Rs 1,524.30 crore. During trading on September 30, it reached a peak of Rs 3,026.45, marking a 52-week high and the upper circuit. The current price-to-earnings ratio is 21.37x, and the price-to-book ratio stands at around 5.21x. Additionally, the return on equity is a healthy 24.38%, according to BSE data.
In September alone, Bajaj Steel shares surged by 36.5%, while year-to-date gains stand at an impressive 154.02%. Over the past year, the stock has rallied by 167.5%.
Bajaj Steel Bonus Issue Proposal
Bajaj Steel announced in a regulatory filing that its Board of Directors will meet to consider issuing bonus shares, which would be the company’s first. Bonus shares are given as incentives to shareholders at no cost, maintaining the face value of existing shares.
Previously, Bajaj Steel executed a stock split in March 2020, reducing the face value from Rs 10 to Rs 5. The company has paid out 19 dividends since September 2002, including Rs 3 per share in the last year, resulting in a current dividend yield of 0.10%.
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Bajaj Steel Shares Performance and Fundamentals
According to Axis Securities, Bajaj Steel has outperformed the Sensex by 141.85% over the past year. The stock is slightly more volatile than the Sensex, with a standard deviation of 2.97%. In the last year, Bajaj Steel’s stock price has increased by 170.53%, surpassing its sector’s performance by 7.76%. Its debt-to-equity ratio is a healthy 0.17, indicating that it primarily finances its assets through equity, and it has no promoter pledges.
About Bajaj Steel Industries
Bajaj Steel Industries Limited, established in 1961 and based in Nagpur, India, is publicly listed on the Bombay Stock Exchange. The company boasts a world-class engineering setup across its plants and is unique in producing machinery for various cotton ginning technologies, including Double Roller, Saw Gin, and Rotobar. Bajaj Steel is on a growth trajectory, continuously expanding its product offerings.
