Multibagger Penny Stock: 1:10 Stock Split Ahead, 10th July Record Date; Buy The Shares?

In India's financial services industry, Bridge Securities is a microcap firm with a market capitalisation of less than Rs 10 Cr. Bridge Securities Ltd offers finance-related services. In India, it provides leasing, stock broking, and securities trading services. It is one of Dalal Street's multibagger penny stocks; in only one year, the scrip climbed from Rs 7.38 to Rs 28.63, generating a multibagger return of 287.94%. However, what really makes the stock intriguing to discuss is that it is subject to a 1:10 stock split, with July 10th serving as the record date.

Bridge Securities Stock Split Record Date

"Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements), 2015, the Company has fixed Wednesday, 10th July, 2024 as the Record Date, for the purpose of ascertaining the eligibility of shareholders entitled for Sub-division/ Split of 1 (One) Equity share of the Company having face value of Rs. 10.00/- (Rupees Ten Only) each into 10 (Ten) Equity shares having face value of Re. 1.00/- (Rupee One Only) each," said the company in a stock exchange filing.

Bridge Securities Trading Update

"Pursuant to Clause 4 of Schedule B of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, as amended and trading restrictions placed by the Company's Code of Practices, Procedure and Conduct to Regulate, Monitor and Report Trading by Insiders ('the Code'), we hereby inform that the Trading Window for purchasing, selling or dealing in the Equity Shares of the Company, will remain closed for all Directors, Promoters, Designated Persons and Insiders of the Company from Monday, 1st July, 2024 till 48 hours after the declaration and publication of Unaudited Financial Results for Quarter ended on 30th June, 2024," said Bridge Securities in a stock exchange filing on Saturday.

Bridge Securities Share Price Target

"Investment company Bridge Securities Ltd appears to be overbought at the current price point, with its RSI reading being at 74 on daily, 69 on weekly, and 68 on the monthly timeframes. The stock has observed significant growth and has delivered a 1-year return of 290.13%, a 3-year return of 203%, and a 5-year return of 318.89% but zero dividend BRIDGESE's PE ratio of 16.89 is much higher than the sector average of 9, suggesting overbought conditions while its P/B ratio of 9.5 indicates a premium valuation. Despite this, the zero dividend yield and negative ROE of 158.44% suggest potential profitability issues. Given the current market performance, I would advise waiting for a price dip, and considering a buying range of Rs. 25.30 to Rs. 26.00, with targets between Rs. 30 and Rs. 65. Additionally, a holding period of 4 to 10 months is suggested for the expected potential and setting a stop loss at Rs. 22 is recommended to protect gains," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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