The company has decided to issue bonus shares in the ratio of 1:10 i.e. 1 share for every 10 shares. This bonus share issuance approval has been taken by the company’s shareholders on April 3, 2022.
Financials of Ducon
Essentially the company’s free reserves and surplus is deployed to float additional equity shares to company’s shareholders at no cost at a pre-specified ratio. So, knowing the company’s financials is also crucial. Ducon in the last December ended quarter posted 5 times increase in net profit at Rs. 1.5 crore. Also the company’s reserves and surplus are at Rs. 128 crore in March 2021 i.e. is almost double of the previous fiscal year. Monetarily the share price of the stock is low and can be categorised as a penny scrip, nevertheless it is high on valuation with the stock’s P/E of 1394.8.
About Ducon Infratechnologies:
This is a small cap company with a m-cap of Rs. 571 crore. The company is an IT company offering a suite of technology solutions to customers.
The stock in the story is mentioned just for its bonus share announcement and you as an investor based on your financials and risk profile need to assess the stock and then may probably bet if your due diligence seconds the thought.