Priyanka Tiwari
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Suspense crime, Digital Desk : Automotive component giant Samvardhana Motherson International Ltd (SAMIL) is gearing up for a significant board meeting where key financial decisions and potential shareholder rewards will be on the table. The company has announced that its Board of Directors will convene to consider and approve the audited financial results for the fourth quarter (Q4) and the full financial year ending March 31, 2024.
Perhaps most exciting for investors, the board will also deliberate on a proposal for the issuance of bonus shares to its equity shareholders. If approved, this would be another instance of the company rewarding its investors, a practice Samvardhana Motherson is well-known for. The company has a strong history of issuing bonus shares, having done so previously in a 1:2 ratio in October 2022, and before that in 2018, 2017, 2015, 2013, and 2012.
The announcement comes at a time when SAMIL's stock has been performing impressively. In the past month alone, the share price has surged by approximately 14%, delivering a substantial 30% return over the last six months and an impressive 70% return over the past year.
This positive momentum is backed by optimistic outlooks from brokerage firms. Jefferies, for instance, maintains a "buy" rating on Samvardhana Motherson, setting a target price of ₹150 per share. The brokerage highlights the company's robust order book, its strategic positioning to benefit from the growing electric vehicle (EV) market, and the potential for margin improvements as key growth drivers.
Should the board approve the bonus issue, a record date will be subsequently determined to ascertain the eligibility of shareholders for these bonus shares. While the company also has a history of paying dividends, the focus of this upcoming meeting, beyond the financial results, is squarely on the potential bonus share announcement. Investors will be keenly watching the outcome of this board meeting.
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