Hardwyn India: Mutlibagger stock announces stock split, bonus shares

Hardwyn India shares were under the spotlight on Thursday after the company board approved and announced the issue of bonus shares. The stock recovered from the early cut and nudged higher. The company announced the aforesaid corporate action via an exchange filing on Wednesday.

In its meeting held on Wednesday, April 26, the company board approved the sub-division of equity shares in a 1:10 ratio. It means each equity share of the company with a face value of Rs 10 each will be divided into 10 equity shares with a face value of Re 1 each.

The company board also approved issuance of bonus equity shares in a 3:1 ratio. It means that one bonus share with a face value of Re 1 each will be allotted to the eligible shareholders for every three shares with same face value held by them, the company said in its filing. It suggests the stock split will be followed by an issue of bonus shares.

However, the corporate actions are subject to approval from the shareholders of the company and the record date for the same will be intimated to the exchange later, the company's filing added. The company board also approved the amendments in capital clause in the memorandum of association (MoA) of the Company.

Shares of Hardwyn India recovered from the early cuts to rise about 3 per cent to Rs 357.80 on Thursday. The company was commanding a market capitalization less than Rs 950 crore. The stock had settled at Rs 350 on Wednesday.

Hardwyn India has delivered multibagger returns to investors in the long run. Shares of Hardwyn India have surged about 5,000 per cent from its value of Rs 7 in August 2020. The stock has turned 50x in less than three years. Even in the last one year, the stock has gained about 170 per cent.

Hardwyn India is an India-based manufacturer of architectural hardware and glass fittings, which provides solutions to residential and commercial structures.

For the quarter that ended December 31, 2022, Hardwyn India reported net sales of Rs 34.73 crore and a net profit of Rs 3.27 crore. The company's EBIT reached Rs 4.73 crore, while its EPS stood at Rs 2.13. It is yet to announce the earnings for the March 2023 quarter.

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