1:1 Bonus Shares Incoming: Record Date This Week For Huge Rs. 32.50 Dividend; Is It Time To Buy Sharda Motor?

The industry leader in producing a broad variety of automotive components, such as suspension systems, seat frames, exhaust systems (including catalytic converters), and more, is Sharda Motor Industries Ltd. Sharda Motor has demonstrated its expertise in this field by being acknowledged as an industry leader for exhaust systems. As the small-cap auto stock approaches its record date for a massive payout of 1625% and 1:1 bonus shares for which the record date is yet to be announced, Sharda Motor Industries is probably going to be in the spotlight in the upcoming sessions. Check all the details here, along with an analyst's opinion on whether now is the best time to buy the stock.

Sharda Motor Industries Dividend

"The Board has recommended a final Dividend of Rs. 32.50 per equity share of Face Value of Rs. 2/- each (i.e 1625% of Face Value per equity share); for the Financial Year 2024-25 subject to the approval of shareholders in the ensuing Annual General Meeting. The Board of Directors has fixed Friday, June 13, 2025 as the record date for the purpose of final dividend for the financial year 2024-25, if approved by the shareholders in Annual General meeting," said Sharda Motor Industries in a stock exchange filing.

Sharda Motor Industries Upcoming Bonus Shares

The Board of Directors has considered and approved "issuance of bonus shares to the Shareholders of the Company in the ratio of 1:1, i.e. 1 Bonus Equity Shares of face value of ₹ 2/- each fully paid up for every 1 existing equity share of face value of ₹ 2/- each fully paid up, to the eligible members of the Company as on the record date, as may be fixed, subject to the approval of the Shareholders of the Company. The Bonus Shares if allotted shall rank pari-passu in all respects and carry the same rights of the existing Equity Shares," Sharda Motor Industries had earlier informed stock exchanges on May 24, 2025.

Sharda Motor Industries Financials

For the fourth quarter of FY25 and the entire fiscal year FY25, Sharda Motor Industries recorded a mixed financial performance. The company's consolidated revenue from operations in Q4 FY25 was Rs 749.85 crore, representing a sequential growth of 9.3% and a year-on-year (YoY) gain of 6.6%. Despite a 4.9% decline from Q4 FY24, the quarter's net profit of Rs 83.94 crore was an 11.3% gain over the previous quarter, or Q3FY25. For the quarter, earnings per share (EPS) were Rs 29.24. The quarter's EBITDA was Rs 100.8 crore, with a 13.4% margin improvement.

Sharda Motor Industries reported consolidated revenues of Rs 2,836.57 crore for the full year FY25, representing a modest gain of 1% over FY24. From Rs 299.59 crore the year before to Rs 314.92 crore this financial year, the net profit increased by 5.1%. EPS for the entire year went up from Rs 100.77 in FY24 to Rs 109.71. As a result of enhanced operational effectiveness, the company's EBITDA climbed by 10% YoY to Rs 396.4 crore, and its EBITDA margins improved by almost 110 basis points to 14.0% in FY25. The company's balance statement showed total assets of Rs 1,756.9 crore, cash and cash equivalents of Rs 198.9 crore, and net operating cash flows of Rs 270.6 crore.

Sharda Motor Industries Share Price Target

"Sharda Motor is in a solid uptrend, hovering above the ₹1,900 support level. It faces immediate resistance at ₹2,000. A clear breach above ₹2,000 on momentum could propel it toward ₹2,100-₹2,150. On dips, buyers may step in around ₹1,920-₹1,940, with a stop-loss below ₹1,900. The stock's structure is positive, and as long as it holds above support, the trend favors more upside. Traders can look to accumulate on dips or on a breakout above ₹2,000," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

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.