3 Stocks with Split Announcement and Good Technicals

  • Stock Market Analysis

Stock split means dividing the face value of an equity share into desired small units of the face value of a share. A share split increases the number of shares that are outstanding by issuing more stocks to the existing shareholders. Novice investors should note that a stock split reduces the market price of a company’s stock. However, it does not change the market capitalization of the firm. Most of the time, we observe that the split ratio remains 2:1. However, that is not the case always. The ratio is usually dependent on the stock price. Shares with a high price may split in multiple fractions.

The main reason for the stock split is to invite more participation of retail investors and improve the marketability of the stock. It ensures wider participation in a company’s shareholding and thus increases liquidity in the stock. If you own a share that splits, then you may not make money immediately, but you shouldn't sell the stock as the split is considered a positive sign. Here we are covering three stocks that have announced stock split.

1. Schaeffler India Ltd (NS: SCHE )

Schaeffler India manufactures high-precision components and systems for the drive train and chassis applications as well as rolling and plain bearing solutions for a large number of industrial applications. In a BSE filing on October 12, the company declared that it will consider a sub-division of equity shares. In this connection, SIL’s board is scheduled to meet on October 28 to consider the sub-division and approve the unaudited financial results for the quarter ended September 30, 2021.
SCIL

The stock delivered a return of 122.9% in a year, 70.4% return year-to-date, 50.7% in six months, 8% in a month, 8.2% in five days, and 2.8% on October 12. Based on major technical parameters such as Relative Strength Index (or RSI), Moving Average Convergence Divergence (or MACD) and 20-day/30-day/50-day/100-day/200-day Exponential Moving Average (or EMA), Schaeffler India has a ‘buy recommendation. Most notably, FIIs/FPIs and mutual funds have marginally increased their holding in Schaeffler India in September 2021 quarter.

2. Indian Railway Catering and Tourism Corporation Ltd

Indian Railway Catering and Tourism Corporation Ltd (or IRCTC (NS: INIR )) provide services like ticketing, catering, and tourism services for the Indian Railways. The government of India owns 67.4% of IRCTC at the end of the September 2021 quarter. Since its listing in October 2019, the IRCTC stock has been a darling of retail investors. In August 2021, IRCTC announced a stock split of one equity share into five equity shares to attract the larger participation of retail investors. The split date of the stock is October 28, 2021.

IRCTC
So far, the scrip has delivered phenomenal returns since its listing. From its IPO price of Rs 320, the share delivered a whopping 1,545% closing at Rs 4,946.95 on October 12. The stock gained 269.7% in a year, 242.4% year-to-date, 207.6% in six months, 33.3% in a month, 7.9% in five days, and 2.7% on October 12. IRCTC has a ‘buy’ recommendation based on key technical parameters such as MACD, Momentum, and 10-day/20-day/30-day/50-day/100-day/200-day EMA.

3. Steel Strips Wheels Ltd (NS: STWH )

Steel Strips Wheels Ltd manufactures single-piece steel wheel rims for scooters, passenger cars, utility vehicles, and tractors. On September 3, the company’s board approved a stock split in the ratio of two equity shares for every one existing equity share held (1:2 ratio). The company will decide the record date for a stock split in due course of time. The shareholders’ consented to the split at the Annual General Meeting on October 4.
SSWL
The stock delivered a return of 280.2% in a year, 246.4% year-to-date, and 164.8% in six months. On September 27, HDFC (NS: HDFC ) Securities issued a target price of Rs 2,056 for six months on Steel Strips. The share closed at Rs 1,805 on October 12 and trades at a 7.8% discount to its 52-week high. Notably, FIIs/FPIs have marginally increased their holding in September 2021 quarter. The company’s stock has a ‘buy’ suggestion based on key technical indicators such as RSI, MACD, and 10-day/20-day/30-day/50-day/100-day/200-day EMA.

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  • Ratilal Shah @Ratilal Shah
    which are undervalued stock to invest now ?
    Like 5
    • Sameer Padole/Investing.com @Sameer Padole/Investing.com
      @Ratilal Shah small/midcaps in telecom equipment manufacturing
      Like 0
    • Narender Singh @Narender Singh
      hi sameer , have u covered this sector telecom euipment manufacturing in ur views, if not, pls do cover
      Like 1
    • Sameer Padole/Investing.com @Sameer Padole/Investing.com
      Sure, I will
      Like 1
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  • Sandeep Dhillon @Sandeep Dhillon
    never recommend any TATA stocks!!!
    Like 3
    • venus Mstar @venus Mstar
      but why sir
      Like 0
    • venus Mstar @venus Mstar
      but why sir
      Like 0
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  • Sureshkumar Satya @Sureshkumar Satya
    Schaefller-Hold, IRCTC- sell 50%, SteelStrips-Exit
    Like 6
  • Ratilal Shah @Ratilal Shah
    which are undervalued fundamental stock to invest with 2/3 years horoizon.pl.guide me.
    Like 0
    • Avinash Patel @Avinash Patel
      @Ratilal Shah POLYPLEX TRACK AS PER MY KNOWLEDGE FAIR MARKET VALUE 10K TRADING AT 1900/- THIS IS ONLY INFORMATION MAY BE I AM WRONG DO YOUR RESEARCH AND INVEST.
      Like 0
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  • Preshit Dharmameher @Preshit Dharmameher
    Sir can you please tell a best stock from green energy sector?
    Like 1
    • Ajit Pardeshi @Ajit Pardeshi
      Adani total Gas
      Like 1
    • Avinash Patel @Avinash Patel
      @Preshit Dharmameher ADANI POWER BUT I PREFER (POLYPLEX  NOT GREEN ENERGY STOCK TRACK AS PER MY KNOWLEDGE FAIR MARKET VALUE 10K TRADING AT 1900/- THIS IS ONLY INFORMATION MAY BE I AM WRONG DO YOUR RESEARCH AND INVEST.
      Like 0
    • Surag Raghavan @Surag Raghavan
      @Preshit Dharmameher Look at SJVN Ltd in this space . Good fundamentals at attractive price.
      Like 0
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  • Sujata Patil @Sujata Patil
    sir.... is it ryt time to exit from irctc or hold for the 1 month I have only 10 qty
    Like 2
    • Sameer Padole/Investing.com @Sameer Padole/Investing.com
      @Sujata Patil Have a two years view on the stock
      Like 0
    • Sameer Padole/Investing.com @Sameer Padole/Investing.com
      @Sujata Patil Hold it for two years if you don't need the money urgently
      Like 1
    • KOTHAI NAYAKI @KOTHAI NAYAKI
      IRCTC BEFORE SPLIT 6000 TO TOUCH  POSSIBLE
      Like 2
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  • Gopala Krishna @Gopala Krishna
    Hello sir, do you still recommend to buy IRCTC for short-term?
    Like 2
    • Sameer Padole/Investing.com @Sameer Padole/Investing.com
      @Gopala Krishna Sir, please take a look at IRCTC stock today.
      Like 3
    • Upendra Nath Machanuru @Upendra Nath Machanuru
      Its given 8% rally as on now and my question is also same can we take entry now or not . Please guide us
      Like 0
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  • Suresh Kumar @Suresh Kumar
    Thanks
    Like 2
  • sonali kamble @sonali kamble
    cam we stilll but irctc at this rate. or wait or it to fall
    Like 0
    • satish hooda @satish hooda
      What is the last date to buy before split
      Like 0
    • Sameer Padole/Investing.com @Sameer Padole/Investing.com
      @satish hooda 29 October is the record date.
      Like 0
    • Avinash Patel @Avinash Patel
      @sonali kamble WHY YOUR NOT DOING RESEARCH ON BELOW STOCK IRCTC IS GOOD STOCK BUT OVERVALUED POLYPLEX TRACK AS PER MY KNOWLEDGE FAIR MARKET VALUE 10K TRADING AT 1900/- THIS IS ONLY INFORMATION MAY BE I AM WRONG DO YOUR RESEARCH AND INVEST.
      Like 0
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  • Valaiyapathy Sivaprakasam @Valaiyapathy Sivaprakasam
    Thank you
    Like 0
  • Praveen Kumar Mukriyantavita @Praveen Kumar Mukriyantavita
    thanks Sameer sir
    Like 0
  • sudhar nand @sudhar nand
    very good
    Like 0
  • RAKESH BISHT @RAKESH BISHT
    Thanks
    Like 0
  • Ashok Khade @Ashok Khade
    🙏
    Like 0
  • Alauddin Shaikh @Alauddin Shaikh
    🙏
    Like 0
  • Tr Surendhar @Tr Surendhar
    Thank u sir
    Like 0

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