1:5 & 1:2 Splits, 24 Dividends: Rs 180 Agro Stock To Reward First Ever Bonus Of 1:1; Average Target At Rs 480

Agriculture products company, Gujarat Ambuja Exports has turned ex-bonus for its first-ever bonus issue in the ratio of 1:1. It means that the company will reward 1 bonus share for every 1 existing equity share to eligible shareholders. So far, the company has delivered dividends and two stock splits on exchanges. The outlook ahead for Gujarat Ambuja shares is robust with the possibility of triple-digit gains in the near term.

Gujarat Ambuja Exports Share Price:

On March 15, the ex-bonus date, the stock price ended at Rs 179.95 apiece, down by 1.91% on BSE with a market cap of Rs 8,253.78 crore.

The stock's 52-week high and low are at Rs 210.38 and Rs 113.98 per share respectively.

In six months, the stock has gained by 26.3%, while in a year, the upside is around 48.2%. In 5-years, the stock emerged as a multi-bagger with gains of a whopping 231.5%.

Gujarat Ambuja Exports Bonus Issue:

Its first-ever bonus issuance is in the ratio of 1:1 and will be given to those shareholders who hold Gujarat Ambuja shares as of the record date.

As per the regulatory filing, the company fixed Saturday, 16th March 2024 as the Record date for issuance of bonus shares and the book closure earlier decided by the Company is withdrawn.

The company added, that the members whose names appear (a) as beneficial owners in the statement(s) furnished by the Depository(ies) and (b) as members in the Register of Members of the Company as of the close of business hours on Record Date would be entitled for issuance of Bonus equity shares of the Company in the proportion of 1:1 i.e. 1 (One) new fully paid-up Bonus equity share of Rs. 1/- (Rupee One only) each for every 1 (One) existing fully paid-up equity share of Rs. 1/- (Rupee one only) each.

The allotment details will be announced in due course.

Gujarat Ambuja Exports Stock Splits:

So far, Gujarat Ambuja Exports have turned ex-split twice. The first stock split was of ratio 1:5 where the face value of Rs 10 was trimmed to Rs 2 apiece. It was carried out in January 2006.

The second stock split was done in October 2020 for a ratio of 1:2, where the face value was trimmed to Rs 1 from earlier Rs 2. Here, the number of stocks would double in investors' portfolios due to the ratio.

Gujarat Ambuja Exports Dividend:

As per Trendlyne data, the company has delivered up to 24 dividends so far since August 2001. In the last 12 months, the company paid dividends up to Rs 0.70 per share.

On its current market price, the stock has a dividend yield of 0.19%.

Gujarat Ambuja Exports Latest Development:

Earlier in March, the company announced that it successfully commissioned a 120 TPD Liquid Glucose Unit at its existing unit in Malda, West Bengal.

Further, the company has already secured its position as the leading producer of Liquid Glucose in India. With this expansion, the collective Liquid Glucose Capacity now reaches 900 TPD across five locations.

Gujarat Ambuja Exports share price target:

Also, as per Trendlyne, the consensus recommendation from 1 analyst for Gujarat Ambuja Exports Ltd. is STRONG BUY. The 1-year average target price is set at Rs 480, which indicates a massive 167% potential upside in the stock ahead. The stock's Return on Equity(ROE) for the last financial year was 13.56%, in the normal range of 10% to 20%. Further, its Price Earning Ratio is 25.47, lower than its sector PE ratio of 28.54.

Additionally, its Debt to Equity Ratio of 0.09 is less than 1 and healthy, which implies that its assets are financed mainly through equity. Meanwhile, Promoter Pledges are zero.

About Gujarat Ambuja Exports:

Gujarat Ambuja Exports Limited (GAEL) is principally involved in the manufacturing of Corn Starch Derivatives, soy derivatives, Feed Ingredients, Cotton Yarn, and Edible Oils. Since its incorporation in 1991, GAEL strives to serve the Food, Pharmaceutical, Feed and many other industries with a long-term growth strategy in the Agro-Processing sector.

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