Hi, We often tell you about those companies which have announced any stock split or bonus in the recent past.
So today we will tell you about 2 such companies whose stock split dates are near.
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So let's now come back to our topic.
Before we talk about those 2 companies, let us quickly understand the concept of a stock split.
In a stock split, the company's board of directors splits the existing shares into multiple shares, increasing the total number of shares.
A stock split does not change the total market cap of the company.
For example, in a 2:1 stock split or a 2 for 1 stock split, the number of shares held by existing shareholders is doubled.
If before the stock split 10 million shares in the market of the company, after the share split, the company will have 20 million shares.
In this case, the share price of the company should be halved by about 1/2.
But due to the changing supply-demand, it is not exactly half.
Generally, stock splits are done by working out the share price to make it more affordable,
so that more people can buy the shares of the company, and there is no liquidity issue in the shares.
Now let's talk about those 2 companies whose ex-split dates are near.
We have done only those companies whose market cap is more than 2000 crores.
We will cover in the market cap i.e. for the company which has the highest market cap, we will tell you at the end in ascending order.
The first company is - JBM Auto Ltd.
This company is in the automotive business, which is manufacturing and selling Sheet Metal Components, Tools, Dies, Molds, etc.
On 8 December 2021, the company announced a 5 for 2 stock split.
That is, every 2 shares you bought will be converted into 5 shares.
For example, if you own 20 shares of a company, you will have 50 shares of the company after a stock split.
The record date for Is Split is February 22 and the ex-split date is November 21, February.
That is, if you buy the company's shares on or before February 20, then you will be eligible.
The company has a PE ratio of 79.17, and a Debt to Equity ratio of 1.44.
In terms of profitability, the company has a Return on Equity of 6.82%, and a Net Profit Margin of 2.49%.
In the last 5 years, the company's sales have compounded at a rate of about 5.48%.
The company's share price has grown by 279.26% in the last one year.
In the last 5 years, the company has given a compounded annual return of 43.49%.
The second company is Schaeffler India Ltd.
Involved in machine-building manufacturing activities like high-precision rollers, ball bearings, engine systems, transmission components, etc.
The company announced a stock split of 5 for 1 on 28 October 2021.
That is, every 1 share you bought will be converted into 5 shares.
For example, if you own 10 shares of the company, then after the stock split you will have 50 shares of the company.
The record date for is split is February 9 and the ex-split date is February 8.
That is, if you buy the shares of the company on or before 7 February, then you will be eligible.
The company has a PE ratio of 49.29, and a Debt to Equity ratio of 0.02.
In terms of profitability, the company has a Return on Equity of 9.54%, and a Net Profit Margin of 7.73%.
In the last 5 years, the company's sales have compounded at a rate of about 17.07%.
The company's share price has grown by 113.39% in the last one year.
In the last 5 years, the company has given an annual return of 17.15%.
So these were the 2 companies whose ex-split dates are near.
In companies, you can see your name and their ex-split date on your screen.
Do tell us by commenting whether you have invested in any of the companies or are you going to invest or not?
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