A strong performer in the Indian auto components sector is all set to reward its shareholders with 1:1 bonus share issue tomorrow. As the announcement gains traction, market sentiment appears to have responded positively.
The company in focus is Sharda Motor Industries Limited which opened today at Rs. 2,099.40, reaching a high of Rs. 2120.00 over the previous close of Rs. 2,084.40, has a market capitalization of Rs. 6,027.24 crore.
Sharda Motor Industries Limited is trading ex-record date tomorrow i.e., July 04, 2025 followed by earlier announcement of issuing bonus shares in the ratio of 1:1, i.e. where 1 Bonus Equity Share of face value of Rs. 2/- each fully paid up will be issued for every 1 existing equity share of face value of Rs. 2/- each fully paid up, to the eligible members of the Company as on the record date.
The bonus shares will be issued from the company’s General and Capital Redemption Reserves, which allows Sharda Motors to reward shareholders without impacting its cash flow.
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Adding to the shareholder value, the Board has also recommended a final dividend of Rs. 32.50 per equity share (equivalent to 1,625 percent of the face value), and fixed the record date for the same on June 13th 2025.
Founded in 1986, Sharda Motor Industries Limited is a leading Indian manufacturer of automotive components, catering to major OEMs across passenger, commercial, and off-highway vehicle segments.
Known for its engineering excellence and consistent performance, the company has delivered a Compound Annual Growth Rate (CAGR) of 43.3 percent in profit over the last five years. Additionally, it has maintained a stable dividend payout of 30 percent, balancing both reinvestment and shareholder returns.
Financial performance continues to trend upward. Revenue increased from Rs. 2,809 crore in March 2024 to Rs. 2,837 crore in March 2025, while Profit After Tax (PAT) climbed from Rs. 295 crore to Rs. 312 crore in the same period. The company is almost debt free indicating a strong balance sheet.
With strong fundamentals, consistent profitability, and shareholder-friendly actions, Sharda Motor Industries is steadily building investor confidence, with its consistent performance and shareholder-friendly moves drawing growing interest from both institutional and retail investors looking for long-term value.
Written by – Manan Gangwar
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