Stocks that boost portfolio post stock-split anouncement

Moneycontrol Bureau

There are stocks which are too hot to handle while there are others which really burns a big hole in your pockets. According to Moneycontrol analysis, so far in 2011, 43 companies have announced their stock split while 19 companies are trading ex-split.

Now, those stocks which have announced stock split in 2011 have given  returns as high as 200%. Hold your breathe, Vision Techno has given highest return of 205% since the stock split announcement date. Followed by Exelon Infra , Dazzel Confindiv , Tuni Textile Mills and Money Matters Financial Services gained 165%, 109%, 54% and 50% respectively.

Among the predominant stocks Titan Industries , HDFC Bank gained 10-12% while Tata Motors slipped 11%.

However, there is a flip side to this as well. Nouveau Global , Volant Textile and Windsor Machines are those which have yielded negative returns as  62.12%, 60.37% and 27.65% respectively.

A stock split is done by the companies, when share price become too high. The main object is to make the shares price reasonable to small investors even though the underlying value of the company remain the same. Most companies believe that on choosing stock split the share volume is likely to increase thereby increasing volatility.

Top positive performers post split announcement.

Source: Capitaline

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