Vakrangee extends rally on 1:1 bonus issue; stock hits new high

The stock hit a new high of Rs 659, rallied 25% since November 3, after the company said its board will meet to consider issue of bonus shares.

Vakrangee hit a new high of Rs 659, up 7% on the BSE in intra-day trade, extending its past six-session long rally, after the board of directors of the company on Monday recommended a bonus issue in the ratio of 1:1 i.e. 1 share for every 1 share held.

In past seven trading sessions, the stock rallied 25% from Rs 527 on November 3, after the company said its board will meet to consider and approve issue of bonus shares. On comparison, the S&P BSE Sensex was down 2% during the same period.

Vakrangee reported a strong 50% growth in net profit at Rs 190 crore in September 2017 quarter (Q2FY18) against Rs 126 crore in a year ago quarter. Net sales grew 62% to Rs 1,551 crore from Rs 959 crore in the corresponding quarter of previous fiscal.

Thus far in the calendar year 2017, the stock appreciated 141% against 24% rise in the benchmark index.