In a surprising turn, Bharat Rasayan’s shares fell 9% on Monday after the company approved a stock split and bonus issue, both typically viewed as positive moves. The board’s decision to split shares in the ratio of 1:5 and issue bonus shares in a 1:1 ratio didn’t excite investors, leading to heavy intraday selling.
According to analysts, traders may have taken the opportunity to book profits after a sharp rally in recent months. The short-term dip doesn’t alter the company’s long-term fundamentals, which remain strong amid rising agrochemical exports and consistent profit growth.
Experts expect renewed buying interest once the bonus and split take effect, as the lower price per share could attract retail investors.
