Several stocks, including JBM Auto, Indraprastha Gas (IGL), and Senco Gold, are displaying up to a 50% decline on some trading apps today. However, this sharp drop is not due to a market crash but rather an adjustment for corporate actions. All three stocks turned ex-bonus or ex-split, leading to a proportional decrease in their stock prices. Indraprastha Gas Ltd traded ex-bonus, while JBM Auto Ltd and Senco Gold Ltd traded ex-split during Friday’s session, causing a significant yet expected adjustment in their valuations.
Indraprastha Gas Share ex-split/ex-bonus
On Friday, Indraprastha Gas (IGL) saw its stock price open at Rs 197.85, a sharp decline from its previous close of Rs 396 on Thursday.
However, this drop was purely technical, as the stock adjusted for its 1:1 bonus issue. Some trading apps may still be reflecting the unadjusted price from the previous session, creating the illusion of a 50% plunge when, in reality, the change is due to the corporate action.
In Q3 FY24, IGL’s net profit fell 31.2% YoY to Rs 326.55 crore, while revenue rose 5.7% to Rs 3,758.76 crore. EBITDA declined 27% to Rs 450.34 crore.
Elara Capital recently upgraded Indraprastha Gas (IGL) from a ‘sell’ to a ‘reduce’ rating, adjusting its target price to Rs 191.5 per share (down from Rs 383). Meanwhile, HDFC Securities has kept its ‘buy’ rating on IGL, setting an adjusted target price of Rs 257.5 per share, down from Rs 515.
Senco Gold Share Ex-Split/Ex-Bonus
Senco Gold’s stock saw a significant drop from Rs 905 on Thursday to Rs 445 on Friday, following the adjustment for its stock split. The company halved its face value from Rs 10 to Rs 5, with January 31 marked as the record date for the split. Senco Gold has not yet reported its Q3 FY25 earnings.
JBM Auto Share Ex-Split/Ex-Bonus
Shares of JBM Auto closed at Rs 1,495 on Thursday but opened at Rs 757.05 on Friday, reflecting nearly a 50% drop after the company’s stock split. JBM Auto reduced its face value from Rs 2 to Re 1, with January 31 as the record date for the split.
For Q3 FY24, the company reported an 8.3% YoY rise in net profit to Rs 52 crore. Revenue from operations increased by 3.7% YoY to Rs 1,396 crore, while EBITDA grew 11% YoY to Rs 175 crore.