Brady: Bonus binge

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The stock appreciated by 22 per cent from Rs 157 to Rs 191.20 on Friday and 40 per cent in a week following a bonus announcement.

On Thursday, September 27, the board of directors decided to issue bonus shares in the ratio of one equity share for every two shares held. This is the second bonus issue in the last one year.

In November 2006, the board of directors issued bonus shares in the ratio of 1:1. The company had free reserves of 1.60 crore against an equity base of Rs 1.50 crore as at the end of March 2007.

It posted growth of more than 100 per cent in net profits in the last two financial years. The total net profit of the company increased almost three fold in FY07 to Rs 81 lakh from Rs 28 lakh in FY06. The company had posted net profit of Rs 28 lakh in FY05.

Bradys is India's premier market mover in material handling equipment, offering engineering solutions for the last 110 years.

The promoters held 81 per cent stake in the company, corporates accounted for 6 per cent and individual investors owned 10 per cent at end of the June 2007 quarter.