V-Guard Industries hits new high ahead of bonus issue

Thus far in 2017, the stock appreciated 61% as compared to 9% rise in Sensex.

V-Guard Industries rose to its record high of Rs 261, up 6% on BSE, extending its 8% gain in past four trading sessions after the company fixed March 16, 2017 as record date for the purpose of issue of bonus shares. The stock will turn ex-bonus on March 15, 2017.

The board of directors of V-Guard Industries, at its meeting held on January 30, 2017, had recommended the issue of bonus shares by way of capitalization of reserves in the ratio of 2:5 (two shares for every five shares held) to the members.

The board also considered the commencement of commercial production of stabilizers and electric water heaters in March, 2017 at the new manufacturing facilities set up at Sikkim.

Meanwhile, thus far in the calendar year 2017, the stock outperformed the market by appreciating 61% as compared to 9% rise in the S&P BSE Sensex. In calendar year 2016, it rallied 72% against 2% gain in the benchmark index.

The company engaged in consumer electrical and electronics business had reported a consistent growth in its consolidated net profit of over 30% in past several five quarters.

For the first nine months (April to December) of the current financial year 2016-10, V-Guard Industries had posted 57% year on year growth in net profit at Rs 110 crore. It recorded profit of Rs 112 crore during entire previous fiscal 2015-16.

At 10:17 am; the stock was up 2.3% at Rs 252 on BSE as compared to 0.1% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 1.62 million shares changed hands on the BSE and NSE so far.