Banco Products (India) hits 20% upper circuit on strong Q2 results, 1:1 bonus issue plan

So far this year, shares of Banco Products have surged over 30 percent

Shares of Banco Products (India) hit 20 percent upper circuit at Rs 840 per share on November 14, following a stellar performance in the July-September quarter (Q2FY25).

Banco Products specialises in manufacturing and sale of heat exchangers and cooling systems, catering to both domestic and international markets. The company's product offerings play a critical role in automotive and industrial applications.

Banco Products’ net profit more than doubled year-on-year, reaching Rs 138.70 crore in Q2FY25, compared to Rs 66.11 crore in the same quarter last year. This remarkable growth is underpinned by a 23.8 percent year-on-year increase in gross sales, which rose to Rs 888.81 crore from Rs 717.91 crore in Q2FY24.

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In a significant move, Banco Products announced the issuance of bonus shares, marking its first bonus declaration in 17 years. The board approved a 1:1 bonus share issue, granting one new equity share for every existing share held by eligible shareholders as of the record date. This bonus issue is seen as a shareholder-friendly move, likely to enhance liquidity and signal management's confidence in the company's future growth trajectory.

During the July-September quarter, there were notable changes in Banco Products’ institutional shareholding. Foreign institutional investors (FIIs) marginally reduced their stake from 3.21 percent to 3.08 percent, while overall institutional holdings dropped slightly from 3.35 percent to 3.26 percent. However, mutual funds bucked the trend, increasing their stake from 0.07 percent to 0.11 percent.

So far this year, shares of Banco Products have surged over 30 percent, beating benchmark Nifty 50's 9 percent rise.

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