SG Mart's board approves a bonus share issue and a 1:10 stock split

SG Mart share price shot up to a high of ₹10,715.20 on 9 January 2024. On 8 January 2024, SG Mart's board approved a 1:1 bonus share issuance, eligible shareholders will receive one bonus equity share for every existing equity share they hold. Record date for this distribution is yet to be announced. Once approved, bonus shares are expected to be credited within two months from the board's approval.

Simultaneously, the board approved a stock split at a ratio of 1:10, meaning each existing share with a face value of ₹10 will be split into 10 shares, each with a face value of ₹1. The record date for the split will be communicated to the stock exchange later, pending necessary approvals.

Performance Highlights

SG Mart shares have been a stellar performer in the Indian stock market, delivering substantial returns over different time frames. In the last month alone, the share price has surged by 40%, while the six-month period has seen a 365% increase. Over the past year, SG Mart shares have given a staggering 2,300%, and in the last five years, the multibagger stock has shown remarkable growth, rising from ₹106 to ₹10,500 per share, marking an exceptional 9,800% increase.

SG Mart's impressive performance outpaces Nifty 50 index. While the Nifty 50 index rose by 3.26% in the last month, 12.02% in the six months, and 19.78% in the last year, SG Mart has far exceeded these figures, reinforcing its status as a multibagger stock in the Indian market. After providing huge returns to its investors, SG Mart is now set to reward its shareholders using its capital reserves.

Final Words

SG Mart recently approved bonus shares and a stock split, showcasing the company's dedication to boosting shareholder value and reinforcing its strong position in the Indian stock market due to outstanding stock performance.

Technically, the stock is currently in the overbought zone, as indicated by its Relative Strength Index (RSI) of 86, signaling potential overvaluation. The stock has been consistently trading at the upper circuit since March 2023. When a stock remains in the upper circuit, trading becomes challenging, and investors should maintain caution. It is advisable for investors not to enter in any stock solely based on its previous positive returns.