The shares of Dr Lal PathLabs jumped more than 3 percent on October 27. This comes after the company announced that its board is set to meet on October 31 to consider a bonus issue of shares.
The shares of the company closed at Rs 3,141.75 apiece. Earlier during the day, the stock had surged nearly 5 percent to hit an intraday high of Rs 3,194 apiece.
Dr Lal PathLabs to consider bonus issue:
In an exchange filing released in the post market hours of October 24, Dr Lal PathLabs intimated exchanges that the firm's board is set to meet on October 31 to consider and approve the unaudited standalone and consolidated financial results of the company for the second quarter of the ongoing financial year 2026.
Along with the Q2 results, the board will also consider the declaration of a second interim dividend for the FY26. Earlier this year, the company had announced the first interim dividend of Rs 6 per equity share for the ongoing financial year.
The board will also consider the issuance of bonus shares in accordance with the applicable provisions and subject to approval of shareholders of the company, Dr Lal PathLabs said. It however didn't hint at the possible ratio for the prospective bonus issue.
What is a bonus issue?
While the issue of bonus shares increases the total number of shares issued and owned, it does not change the market capitalization of the company. This increases the overall liquidity of the stock, and makes it more affordable for other investors to add to their portfolio, creating strong upside potential for the stock.
Bonus issue essentially are free shares offered by a company from its reserves. Such issue is perceived to reflect on a firm's strong financials and growth potential.
Notably, the company's peer Thyrocare Technologies announced a bonus issue of shares in the ratio of 2:1 earlier this month.
Dr Lal PathLabs share price history:
Dr Lal PathLabs shares dropped 1.5 percent in the past five days, but gained nearly 12 percent in the past six months. The stock has increased nearly 3 percent in 2025 so far, and rose 1 percent in the past one year.
Its P/E ratio currently stands at around 50, with a ROE of 25, according to data on BSE. It has a market capitalization of more than Rs 26,320 crore.
Also read: Our LIVE blog on Q2 updates
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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