3 Bonus Shares On 1 Rs 313 Penny Stock; Pharma Co Hits Back-To-Back Upper Circuits: Fundamental Analysis

Shukra Pharmaceuticals, a penny stock with a market cap below Rs 500 crore, has been buzzing with back-to-back 2% upper circuits since the start of this week's trading session. The reason behind the bullish trend is because of the company's hefty bonus shares announcement during the weekend that went by. Shukra is set to reward 3 bonus shares on 1 existing share.

On April 9, the pharma stock froze at a 2% upper circuit of Rs 313.40 apiece with a market cap of Rs 343.08 crore on BSE.

In the previous session, Shukra had touched a 2% upper circuit of Rs307.30 apiece.

Currently, Shukra's share price is near its 52-week high of Rs 388 apiece, while it has given returns to the tune of 522.6% from its 52-week low of Rs 50.34 apiece.

On April 6th, Shukria announced that the Board of Directors has fixed Saturday, April 20, 2024, as the record date, for the purpose of ascertaining the eligibility of shareholders entitled for issuance of Bonus Shares.

Since April 20th is a weekend, the record and ex-bonus date will be on April 19th.

Also, Shukra said, "The Bonus Shares, once allotted, shall rank pari-passu in all respects with and carry the same rights as the existing equity shares and shall be entitled to participate in full in any div[denq and other corporate action, recommended and declared after the new equity shares are allotted."

Shukra is going to carry a 3:1 bonus shares ratio. It means that it will issue 3 [Three) fully paid-up bonus
equity share of Rs. 10/- [Rupees Ten only) each for every 1 (0ne) fully paid-up equity share of Rs. 10/- [Rupees Ten only) each held by the Members of the company as on the Record Date.

Key fundamentals for the stock analysis of Shukra as per Trendlyne data are:

- Stock Price rose 492.1% and outperformed its sector by 422.05% in the past year.

- Debt to Equity Ratio of 0.2 is less than 1 and healthy. This implies that its assets are financed mainly through equity.

- Promoter Share Holding increased by 0.06% in the most recent quarter to 50.96%.

- Promoter Pledges are zero.

The price to Earning Ratio is 18.52, lower than its sector PE ratio of 42.25.

- Return on Equity(ROE) for the last financial year was 17.41%, in the normal range of 10% to 20%.

- Interest Coverage Ratio is 23.36, higher than 1.5. This means that it is able to meet its interest payments comfortably with its earnings (EBIT).

Shukra is committed to delivering excellence across National & Global markets. Shukra Pharmaceuticals is a public limited organisation with globally acclaimed manufacturing facilities.