A whole bunch of stocks will be in focus this week as they go through their corporate functions and announce dividends, bonus shares etc.
one of the leading Indian Pharma Stock Torrent Pharma, which is engaged in research, development, manufacturing and marketing of generic pharmaceutical formulations, is set to announce bonus shares later this week.
Torrent Pharma is the flagship company of the Torrent Group which also has a presence in the electricity and city gas distribution businesses.
There are three things to know before a company declares bonus shares:
-Torrent Pharma will issue bonus share In the ratio of 1:1 i.e., one share for every fully paid-up equity share held as on the record date fixed for the purpose.
The record date for this purpose of bonus shares is 11 July 2022 while the prior date is 8 July 2022.
-When pharma company declared bonus in May 2022, it also declared final dividend of 23 per equity share 5 each, which is 460% on its marked price.
This included a special dividend of 15 per share.
Issuing bonus shares to its shareholders will help in increasing the liquidity of the stock as well as help in reducing the price of the stock while being economical for the investors.
Corporate action events often bring about material changes in the company through changes in capital structure.
In terms of bonuses, they may sound like a good thing, but they don’t really give investors anything they didn’t already have.
In essence, it is a way of dividing the same company into a greater number of shares and distributing these additional shares to the shareholders proportionately.
It’s like dividing a pizza among 5 people. You can either cut it into 5 equal pieces to give one piece to each person or you can cut it into 10 pieces to give two pieces per person.
How Torrent Pharma fared in 2022 compared to its peers
Here’s how Torrent Pharma has fared in 2022 so far.
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How Torrent Pharma has performed recently
Torrent Pharma hits 52-week high 3,304 touched on 31 December 2021, while it has a 52-week low of It touched 2,485 in May this year.
Shares of Torrent Pharma have been underperforming in the last one year.
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At current prices, the company trades at 63x the price to earning multiple, while it trades at a price to book multiple of 8.3x.
About Torrent Pharma
Torrent Pharma is the 8th largest company in the domestic pharma market with presence in various therapeutic areas. The company has entered into an agreement with Novo Nordisk to manufacture and supply insulin for the Indian market.
Torrent Pharma’s export business is carried on both by its overseas subsidiaries as well as directly by the parent company.
Torrent Pharma has seven manufacturing facilities in India and one in Levittown, Pennsylvania, USA.
For more information see Torrent Pharma Fact Sheet,
You can also compare Torrent Pharma with its peers:
Torrent Pharma Vs Aurobindo Pharma
Disclaimer: This article is for informational purposes only. This is not a stock recommendation and should not be treated as such.
This article is syndicated from equitymaster.com