Stock-split plan electrifies Bajaj Electricals

Bajaj Electricals gained 4.38% to Rs 762 at 13:58 IST on BSE, after the company’s board approved a 5-for-1 stock split.
The company made this announcement during trading hours today, 12 October 2009.
Meanwhile, the BSE Sensex was up 303.17 points, or 1.82%, to 16,945.83.
On BSE, 57,310 shares were traded in the counter as against an average daily volume of 11,938 shares in the past one quarter.
The stock hit a high of Rs 780.20 so far during the day, which is a record high for the counter. The stock hit a low of Rs 735 so far during the day. The stock had hit a 52-week low of Rs 135 on 6 March 2009.
The stock has risen 24.36% in just five trading sessions from a recent low of Rs 612.75 on 5 October 2009.
The mid-cap stock outperformed the market over the past one month till 9 October 2009, rising 19.69% as compared to the Sensex’s 2.84% rise. It had also outperformed the market in the past one quarter, soaring 94.34% as compared to the Sensex’s return of 20.97%.
The company’s equity capital is Rs 17.44 crore. Face value per share is Rs 10.
The current price of Rs 762 discounts the company’s Q1 June 2009 annualized EPS of Rs 37.85, by a PE multiple of 20.13.
The board has also decided to raise Rs 175 crore through qualified institutional placements (QIPs). If one assumes that the company raises Rs 175 crore at the current market price of Rs 762, there will be a equity dilution of 13.17%.
Bajaj Electricals’ net profit surged 63.4% to Rs 16.36 crore on 15.1% rise in net sales to Rs 365.38 crore in Q1 June 2009 over Q1 June 2008.
Bajaj Electricals manufactures electric fans and general lighting items, such as lamps, special lamps, fluorescent tubes, and lighting fixtures. The company also manufactures consumer durables like small electrical appliances.
Promoters have pledged 2.50 lakh shares representing 1.45% of the equity capital of the company (as on 30 June 2009). Total promoters shareholding in the company is 74.14% (as on 30 June 2009).