Bajaj Steel Industries Ltd shares on the Bombay Stock Exchange (BSE) closed at ₹3,505.60 today, down 0.79%. The company announced a 3:1 bonus share issue on October 3, 2024, with a record date set for November 12, 2024, to determine shareholder eligibility. If you hold 1,000 shares on this date, you will receive an additional 3,000 shares.
Performance Highlights
- Year-to-Date Returns: 203.7%
- 1-Year Returns: 225%
- Market Capitalization: ₹1,822.91 crore
- 52-Week Price Range: High of ₹3,724.00 and low of ₹1,030.60
Analyst Commentary
Independent SEBI Research Analyst A R Ramachandran notes that Bajaj Steel’s shares are bearish on daily charts, facing strong resistance at ₹3,724. A daily close below the support level of ₹3,376 could result in a potential target of ₹2,871 in the near term.
Should You Buy Before the Record Date?
Advantages:
- Acquiring shares before the record date allows you to benefit from the bonus shares, increasing your total shareholding significantly.
- The company has demonstrated impressive returns historically, with substantial growth in share value.
Risks:
- The current bearish outlook may lead to short-term price declines, especially if the stock trades ex-bonus (when the stock starts trading without the bonus entitlement).
Deciding whether to purchase Bajaj Steel Industries shares requires careful consideration of both the long-term benefits from the bonus share allocation and the current market conditions. If you are interested in this stock, it might be helpful to consult with a financial advisor to assess your investment strategy and risk appetite, especially given the recent bearish sentiment in the market.
Disclaimer: This information is for educational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions. Past performance is not indicative of future results, and investments in stocks carry risks, including the loss of principal.
Leave a Reply