4 Multibagger Stocks That Will Soon Issue Bonus Shares

Bonus shares are issued in some provided proportion to the company's existing shareholders free of cost. From the company's free reserves, the bonus shares are issued at the existing FV of equity shares of the company.

So, here are 4 multibagger scrips that will go ex-bonus next week and hence will be soon adding bonus shares for your existing shareholding in the stock. So, check if you hold any of the below scrip and eligible for bonus shares.

BSE 

The monopoly stock exchange that turned out to be quite lucrative for investors with 1-year return of 421% announced bonus share issuance. The company on February 8, 2022 announced that it shall pay bonus shares in the ratio of 2:1 i.e. 2 shares of Rs. 2 each for every one full paid up share of Rs. 2 each held by the shareholders of the company as on record date fixed at March 22, 2022 and hence the stock shall trade ex-bonus from March 21, 2022. BSE stock ahead of the stock turning ex-bonus trades lower by over 5% on Thursday (March 17, 2022) at a price of Rs. 2811 per share, while the stock's 52-week high price is Rs. 3140. BSE as per the latest m-cap is the small cap company with a high public shareholding. The corporatized entity that offers a transparent platform for trading in equity, mutual funds, debt and derivatives instruments.

Virinchi 

The company has announced 1:1 bonus share issuance and shall again go ex-bonus on March 21, 2022. The small cap company from the software space works to offer market lending loan management system for short term micro credit industry, full scale IT services with speciality in Analytics & Mobility and Healthcare Delivery Business in India comprising Three Operating Hospitals with a Pan-India Healthcare Mobility solution. Established in 1991, the company operates out of Hyderabad. For the purpose of eligibility determination for bonus shares, record date is March 22, 2022.

DJ Mediaprint & Logistics 

A small cap company's is a leading provider of Integrated Printing, Logistics and Courier solutions in India and overseas with an extraordinarily networked transport operations, pre-eminent quality standards and leading processes & operations. It also provides Bulk Mailing, Speed Post, Records Management, Manpower Supply, RTO Management, Bulk Scanning, Moving and other services. The company also announced 1:1 bonus share issuance on 3rd February and the stock shall turn ex-dividend on 24th March, while the record date for the said bonus is March 25, 2022.

Nandan Denim 

This is the country's leading denim supplier. The company's annual denim production capacity is 110 million meters. The company supplies its fabric to its clientele in over 27 nations across the globe. The other products of the company are shirting and yarn. This company on February 10, 2022 announced bonus shares in the ratio of 2:1 and the stock shall trade ex-bonus from March 24, 2022, while the record date is March 25, 2022.

Effects of bonus share issuance one should know 1. Increases number of outstanding equity shares 2. Reduces share price in proportion to number of bonus shares issued 3. Reduces free reserves and surplus of the company. 4. Creates implicit value per shareholder 5. Increase liquidity in shares on the stock exchanges 6. Reduces per share ratios i.e. EPS, book value per share etc.

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2 Small Cap Stocks To Buy For Gains Up To 17% In 3 Months: HDFC Securities

In the holiday truncated week, Indian benchmark indices gained massively on positive global cues as the markets had already factored in a rate hike by the US Federal Reserve Bank. Nifty clinched levels of 17287.

Meanwhile, HDFC Securities has come up with positional calls based of technical analysis of the stock by the brokerage's research experts. The given stock ideas are based on the market movements by examining historical data, like price and volume. The analysis of data and charts is carried out for trading signals and price patterns to identify investment opportunities.

So, here are the 2 stocks from different industries given as a 'Buy' for gains up to 17% in just 3 months of time.

Zensar Technologies 

The small cap company is a technology consulting and services company with 10,000 associates in 33 global locations. The company's focus is on conceptualizing, designing, engineering, marketing and managing digital products and experiences for high-growth companies. The company renders its services to industries such as Hi-tech, Manufacturing, Banking & Financial Services, Insurance, Consumer Services, Public Services and Healthcare. HDFC Securities in its research report suggest to 'Buy' the stock of Zensar for a target of Rs. 440, which at the current price of Rs. 376.9 will mean gains of 16.74%. The time horizon for the investment is suggested to be 3 months with a stop loss maintained at Rs. 334.

Technical observation as per the brokerage 

Brokerage is of the view that after consolidating in the last 5 sessions, the stock has given a breakout. The stock has crossed above its 21 EMA which suggests of bullishness in the counter. "Major momentum oscillators are showing positive indications. RSI oscillator is placed above 50 and rising upwards, Indicating strength in the current uptrend", notes the brokerage. So in view of these observations, the brokerage recommends to buy Zensar at the current price and average at Rs. 350 for the upside target of Rs. 400 and Rs. 440. 

Angel One 

This is another small cap company previously known as Angel Broking. The company is amongst the leading independent full-service retail broking house.

Technical observation as per the brokerage 

The stock has corrected from its high scaled in October 2021 of Rs. 1689. Then in December, the stock found support at Rs. 990 and since then has strongly rebounded. During this week, the stock broke out of 1180-1380 range on the back of healthy volumes, indicating the stock is set to continue its intermediate uptrend. Further, weekly momentum readings like the 14-week RSI are picking up, which is encouraging. The Relative Strength Comparative indicator too is climbing higher, indicating the stock is likely to outperform the Nifty index. 

Stock                               Buying range              Current market price      Target         SL 

Zensar Technologies    Rs. 350 for averaging          Rs. 376.95                    400/440       334 

Angel One                       1440-1472.3                      Rs 1472.3                    1615/1760    1330 

Both the above investment ideas are for the time horizon of up to 3 months.

Disclaimer: The above stocks are taken from the brokerage report of HDFC Securities based on technical analysis. Please engage in your own analysis before taking on any such risky bet.

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