2:1 Stock Split & 100% Dividend Approved: Are You Willing To Explore This Stock’s Potential?

Jost's Engineering Company Limited was founded in 1907 and is based in Mumbai. It is a producer of material handling equipment (MHD) and a supplier of a wide variety of engineering product (EPD) solutions that are used in several sectors. The corporation has announced a 100% dividend and a 2:1 stock split, resulting in a double bonanza for shareholders. The company's market value is Rs 474.17 Cr, and the stock is now trading on the BSE at Rs 969.80 per share.

Jost's Engineering Company Stock Split

The Board of Directors considered and approved "Stock Split in the ratio of 2:1 (i.e 2 new equity shares of Rs 1/- each for existing 1 equity share of Rs 2 /-) subject to the approval of shareholders in the ensuing Annual General Meeting. Alteration in Authorised Share Capital Clause of the Memorandum of Association of the Company consequent upon sub-division of equity shares.

The rationale behind the stock split is to broaden base the investor base by encouraging the participation of retail investors and also to increase the liquidity of the company's shares, the Board of Jost's Engineering informed stock exchanges.

Jost's Engineering Company Dividend

"The Board of Directors recommended dividend for the financial year 2023-24 of Rs. 2 per equity share of Rs. 2/- each (100%). Dividend, if approved by the shareholders of the Company, shall be paid within 30 days after the conclusion of the ensuing Annual General Meeting to the eligible shareholders. The convening of 117th Annual General Meeting of the Company on Monday, 16th September, 2024. The Register of members & Share Transfer Books of the Company will remain closed from 10th September, 2024 to 16th September, 2024 (both days inclusive) for the purpose of payment of Dividend," Jost's Engineering Company said in a regulatory filing.

Jost's Engineering Company Q1 Results

Jost's Engineering Company's net profit increased by 219.30% to Rs 3.64 crore in the quarter that ended in June 2024 compared to Rs 1.14 crore in the quarter that ended in June 2023. Sales for the quarter ended June 2024 climbed 47.75% to Rs 56.44 crore from Rs 38.20 crore in the corresponding quarter ended June 2023.

Jost's Engineering Company Share Price Target

"Jost's Engineering Co. Ltd.'s volatile 52-week range of Rs. 365-1,140 has piqued the interest of market participants. The company's stock delivered an ROE of 18.48%. However, it is overvalued, as seen from its PE ratio of 40.14, which is higher than the sector PE of 33.91. Also, it is trading at 8.55 times its book value. Those willing to explore this stock's potential can enter the range of Rs. 820-780 and set a target for Rs. 1050-1250. For this stock, I recommend a holding period of 3-25 weeks and setting the stop loss at Rs. 730," recommended V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.