Multibagger metal stock to turn ex-bonus Thursday

Shares of Precision Wires India will trade ex-bonus on Thursday. The company announced a bonus share issue in the ratio of 1:2 last month. Record date for determining eligible shareholders in respect of the said bonus shares is also December 22.

Eligible investors will be entitled to get 1 share against every 2 shares they hold in the company.



Earlier last week, the company inadvertently made a filing in relation to the bonus share. But later it clarified that the board meeting for allotment of shares will be held after December 22 (record date), and subsequently the announcement will be given to stock exchanges.

“With reference to our letter dated December 17, 2022, in relation to allotment of bonus shares, we would like to clarify that we have given the announcement inadvertently and it is requested to remove the same,” said the company’s filing.

The scrip ended 7% lower on Wednesday at Rs 105.2 per share.

Pertinently, this is the first-ever bonus share announcement ever since the company’s listing on the stock exchanges. The company is currently trading around 85% higher from its 52-week low price.

In the quarter ended September, the company’s net profit declined to Rs 14.66 crore even as its revenue from operations logged a marginal gain.

Precision Wires is a low-debt company recording improvement in annual net profits for the last 2 years. Also, the company has been consistently offering high returns over 5 years, Trendlyne data showed.

Shares of the company have rallied by a sharp 260% in the last 3 years, while its 1-year return is at 29%.

Precision Wires India is the largest manufacturer of winding wires in the country. The company’s product range comprises enamelled winding round wires, enamelled rectangular winding wires, continuously transposed conductors and paper insulated copper conductor.