SBC Exports Soars After Announcing 1:2 Bonus Share Issue – Record Date SetSBC Exports SoarsSBC Exports Soars After Announcing 1:2 Bonus Share Issue – Record Date Set

SBC Exports Soars After Announcing 1:2 Bonus Share Issue – Record Date Set

SBC Exports Soars : In an exciting development for investors, shares of SBC Exports Limited surged during Tuesday’s trading session following the announcement of a 1:2 bonus share issue. The company, engaged in garment trading, manufacturing, manpower supply, and tour operator services, has fixed March 4, 2025, as the record date for this highly anticipated corporate action.

Stock Performance and Market Movement

The company’s stock saw an intraday jump of 2.4% on the BSE, reflecting investor enthusiasm. By the end of the trading session, SBC Exports closed at ₹19.23, up by nearly 1%, compared to its previous close of ₹19.04.

Despite this positive movement, the stock has faced challenges in the past year, delivering negative returns of around 19%. However, in the last month alone, it has seen a 15% decline, signaling some volatility. With a market capitalization of ₹610.5 crores, the company remains a notable player in its sector.

Understanding the Bonus Share Announcement

SBC Exports has officially set March 4, 2025, as the record date for its 1:2 bonus share issue, meaning that investors who hold the company’s shares as of this date will be eligible to receive one additional fully paid-up equity share for every two shares they currently own.

This move follows the Board’s approval on January 24, 2025, aligning with the company’s strategic approach to rewarding shareholders and improving stock liquidity.

What Is a Bonus Share Issue?

A bonus share issue is a corporate action where a company issues additional shares to its existing shareholders without any extra cost, typically from its retained earnings or reserves. This helps enhance liquidity and encourages retail participation, making the stock more attractive.

Recent Business Developments

SBC Exports has been making significant strides in its business operations. A recent milestone includes securing a work order worth ₹11.13 crores from the Higher Education Department, Delhi, awarded through Guru Gobind Singh Indraprastha University. This contract is for manpower outsourcing services, reinforcing the company’s strong presence in this sector.

Financial Performance – Strong Growth Momentum

The company has demonstrated solid revenue and profit growth, making it an attractive prospect for investors.

Financial MetricQ3 FY24Q3 FY25YoY Growth (%)
Revenue from Operations₹52 Cr.₹72 Cr.+38.5%
Net Profit₹2.87 Cr.₹3.6 Cr.+25.4%

This consistent upward trajectory in revenue and profit signals strong operational efficiency and business expansion.

Key Financial Ratios and Market Insights

Beyond financial growth, SBC Exports also showcases strong financial ratios that provide valuable insights into its market position.

ParameterValue
Market Capitalization₹609 Cr.
Current Stock Price₹19.2
52-Week High / Low₹37.9 / ₹16.5
Stock P/E Ratio36.0
Book Value per Share₹1.75
Dividend Yield0.26%
Return on Capital Employed (ROCE)24.5%
Return on Equity (ROE)23.9%
Debt-to-Equity Ratio0.69
Promoter Holding64.2%
Pledged Percentage20.0%
Quarterly Profit Variation15.1%
Industry P/E23.5
Intrinsic Value₹4.81
Relative Strength Index (RSI)37.8
Earnings Per Share (EPS)₹0.53
Debt₹38.2 Cr.
Free Cash Flow (Last 3 Years)₹-26.3 Cr.
Free Cash Flow (Latest)₹-14.3 Cr.

What These Numbers Mean for Investors

  • High ROCE and ROE: A 24.5% ROCE and 23.9% ROE indicate efficient utilization of capital and strong returns for investors.
  • Debt Levels: The debt-to-equity ratio of 0.69 suggests moderate debt levels, which is manageable for the company.
  • Valuation Metrics: With a P/E ratio of 36.0, the stock is currently trading at a premium compared to the industry P/E of 23.5, indicating high investor expectations.
  • Liquidity Position: The negative free cash flow might raise concerns regarding liquidity, but the company’s revenue growth offsets this to some extent.

About SBC Exports Limited

Founded in 2011, SBC Exports Limited operates in multiple sectors, including:

  • Garment trading and manufacturing
  • Manpower supply services
  • Tour operator services

The company’s diversified business model ensures steady revenue streams and mitigates industry-specific risks.

Conclusion – A Stock to Watch?

The 1:2 bonus share announcement is a positive step by SBC Exports, reflecting its confidence in future growth and commitment to rewarding shareholders.

While the stock has shown short-term volatility, the strong financial growth, recent contract wins, and attractive financial ratios indicate long-term potential. However, investors should consider the valuation and liquidity concerns before making investment decisions.

With the record date set for March 4, 2025, investors looking to benefit from the bonus issue should consider buying the stock before this date.

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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.

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