Bajaj Group-backed steel company, Bajaj Steel Industries witnessed heavy buying, that led the stock to touch new 52-week high and 20% upper circuit on September 30. The stock will be in focus this week as its board members will meet to consider bonus issue proposal, which was one of the reason for bullish trend in the company.
Bajaj Steel Industries Share Price:
The stock price ended at Rs 2931.35 apiece on BSE, up by 16.23% with a market cap of Rs 1,524.30 crore. The smallcap touched a new 52-week high of Rs 3,026.45 apiece during the trading session of September 30, 2024, which was also its 20% upper circuit. The stock's price-to-equity ratio is at 21.37x, while the price-to-book ratio comes around 5.21x as of September 30, 2024.
The company's return on equity is healthy at 24.38%, as per BSE data.
In September month alone, Bajaj Steel surged by a whopping 36.5%. While its YTD performance makes the stock a multi-bagger with gains of 154.02% so far. In a year, the stock rallied by 167.5%.
Bajaj Steel Industries Bonus Issue:
In its regulatory filing, Bajaj Steel said that the meeting of the Board of Directors of the Company is scheduled to be held on Thursday, October 03, 2024, to inter-alia consider the proposal for issuance of Bonus Shares to the shareholders of the Company.
This will be the first bonus issuance by Bajaj Steel.
In generic terms, Bonus shares are one of the many corporate actions that listed companies announce on several occasions. Bonus shares are like incentives which are free of cost given to investors. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.
So far, Bajaj Steel has carried one stock split in the ratio of 1:2, where the face value of Rs 10 is trimmed to Rs 5. This has been in effect from March 24, 2020.
The company delivered 19 dividends since September 2002, as per Trendlyne data. In the past 12 months, the company offered Rs 3 per share dividend. Currently, it has a dividend yield 0.10%.
Bajaj Steel Industries Stock Fundamentals:
As per Axis Securities data, Bajaj Steel has outperformed Sensex by 141.85% in the last 1 year. However, with a standard deviation of 2.97% in 1 year, the stock is more volatile than Sensex by 2.13%. Nonetheless, Bajaj Steel has outperformed Sensex in 7 months of the past 12 months.
Among other fundamentals, as per Trendlyne data are - Bajaj Steel's Stock Price rose 170.53% and outperformed its sector by 7.76% in the past year; Debt to Equity Ratio of 0.17 is less than 1 and healthy, which implies that its assets are financed mainly through equity; and Promoter Pledges are zero.
About Bajaj Steel Industries:
Bajaj Steel Industries Limited (Bajaj), Nagpur, India, established in 1961, is a public limited company, listed on the Bombay Stock Exchange. The company is having world-class engineering setup in its various plants situated in and around Nagpur.
Bajaj is the only company in the world producing machineries for all cotton ginning technologies i.e Double Roller, Saw Gin & Rotobar, all Pressing technologies i.e. Down Packing, Up Packing & Horizontal Packing, as well as Seed Cleaning, Delinting & Decorticating, apart from general engineering fabrication, machining, intelligent electrical panel manufacturing and various other engineering activities. The company is on high growth path and adding various items to its fold consistently yoy.
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