Hindustan Composites sizzles on plans of bonus issue

Hindustan Composites surged 16.22% to Rs 1,847.90 at 10:15 IST on BSE after the company said its board will meet on 10 April 2017, to consider and approve bonus issue of shares.

The announcement was made after market hours yesterday 22 March 2017.

Meanwhile, the S&P Sensex was up 84.20 points, or 0.29% at 29,251.88. The S&P Small-cap index was up 100.75 points, or 0.8% at 14,012.67.

High volumes were witnessed on the counter. On the BSE, 11,000 shares were traded on the counter so far as against the average daily volumes of 336 shares in the past one quarter. The stock had hit a high of Rs 1,908 and a low of Rs 1,795.70, so far during the day.

The stock had hit a record high of Rs 2,119 on 20 September 2016 and a 52-week low of Rs 750 on 8 April 2016. The stock had outperformed the market over the past one month till 22 March 2017, rising 4.22% compared with 1.05% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 4.76% as against Sensex's 12.27% rise.

The small-cap company has equity capital of Rs 4.92 crore. Face value per share is Rs 10.

Hindustan Composites said that a meeting of the board of directors of the company is scheduled to be held on 10 April 2017, to consider bonus issue of shares and a stock spilt. The board will also consider seeking approval of the shareholders of the company through postal ballot process for the same.

Hindustan Composites' net profit rose 37.7% to Rs 12.08 crore on 26% increase in net sales to Rs 51.25 crore in Q3 December 2016 over Q3 December 2015.

Hindustan Composites is engaged in the manufacturing and marketing of fiber-based friction materials.

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