Dolly Khanna & Vijay Kedia Stock Declares 1:5 Stock Split After 800% Rally In 3 Yrs

Small-cap firm Talbros Automotive Components Ltd operates in the consumer discretionary industry. Talbros is a well-rounded manufacturer of auto parts, including products for passenger cars, commercial cars, two-wheelers, three-wheelers, agricultural equipment, off-loaders, industrial vehicles, and more. It is a well-known global participant in the sector thanks to its product range, which includes hoses, heat shields, forgings, chassis and suspension systems, anti-vibration components, and gaskets. After a 140% rally in 6 months, the stock is still in focus as the Board of Directors of the company has declared a stock split in a 1:5 ratio.

"The members at the 66th Annual general meeting (AGM) of the company held on 25th September, 2023 have approved Subdivision/Split of the existing equity shares of the Company, such that 1 (One) equity share having face value of Rs. 10/- (Rupees Ten only) each fully paid up, be sub-divided/split into 5 (Five) equity shares having face value of Rs. 2/- (Rupees Two only) each fully paid- up, ranking pari-passu with each other in all respects with effect from the Record Date. Record Date for Subdivision/Split will be informed separately," said Talbros Automotive Components in a stock exchange filing on Wednesday.

Commenting on the rationale behind the stock split, the company informed stock exchanges that the corporate action has been approved, "To enhance trading activity and liquidity of the Company's equity shares, to encourage participation of small investors by making equity shares of the Company more attractive to invest due to increased volume on account of larger free float and lowered price per share."

The manufacturer of auto components saw a 46.34 per cent rise in its consolidated net profit to Rs 17.4 crore in Q1FY24 from Rs 11.9 crore in Q1FY23. Its net income stood at Rs 185.3 crore in the quarter ended June 2023 up by 20% YoY from Rs 154.67 crore in the corresponding quarter of the previous financial year.

On Wednesday, the shares of Talbros Automotive Components were trading at Rs 964.30 apiece after opening the session at Rs 969.25. The stock reached a 52-week-high of Rs 1,162.95 on (11/08/2023) and a 52-week-low of Rs 380.10 on (29/03/2023). In the Q1FY24, the company's promoters shareholding was 58.42%, DIIs stake was 0.02% and public stake was at 41.57% as per the data of Screener. In the April to June 2023 quarter, ace investor Dolly Khanna held 1,85,715 shares of Talbros Automotive Components in his portfolio which is 1.50% of the total paid-up capital of the company whereas another renowned investor Vijay Kedia portfolio shown holding 1,50,000 shares or 1.22% stake in the company as per the data available on BSE.