Kanoria up on bonus buzz

STOCKS IN THE NEWS

The stock hit an all-time high of Rs 133 on the BSE last week, up 35 per cent from Rs 96.10. The trigger came from the board's proposal for bonus shares and stock split.

After a gap of 18 years, the company recommended bonus shares in the ratio of one bonus share for every two equity shares held. The board of directors also approved the sub-division of equity shares with a face value of Rs 10 a share into Rs 5 each.

The company is one of the leading chemical manufacturing companies in India, producing alco chemicals and chloro chemicals. It posted a net profit of Rs 10.27 crore in the first quarter of FY07-08 on the back of other income of Rs 8.38 crore. The company has a total equity capital of Rs 18.76 crore and trades at a PE multiple of 7.2 on the BSE.