Stocks in Focus: During the month of November, shares of two companies are going to be in focus due to their corporate actions. This includes HDFC Asset Management Company and Unison Metal Limited. HDFC AMC has announced to give bonus shares to investors. Whereas Unison Metal has announced to divide the shares into smaller pieces i.e. Stock Split. Usually, investors consider these two corporate actions as one, but they both have different objectives.
In bonus issue, the company gives additional shares to its existing shareholders for free in proportion to the shares held by them. Whereas in stock split, the company reduces the face value by dividing a share into several parts, due to which the number of shares increases but the total investment value remains the same.
1. HDFC Asset Management Company (HDFC AMC)
HDFC AMC delivered excellent results in the recent September quarter. Net sales of the company increased from ₹887.2 crore to ₹1027.4 crore. At the same time, its net profit (PAT) increased from ₹ 576.6 crore to ₹ 718.4 crore, i.e. an annual increase of 24.6%. However, profits declined by 3.9% on a quarterly basis.
2. Unison Metals Ltd
Stainless steel manufacturing company Unison Metals has decided to divide its shares into ten small parts i.e. Stock Split. The company has said that each of its shares with face value of Rs 10 will be divided into 10 shares with face value of Re 1. This means that for every old share the investor will get 10 new shares.
In the recent September quarter, the company’s net profit declined to Rs 1 crore from Rs 1.3 crore. The company’s revenue increased by 54.4% to Rs 13.75 crore.
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