This Mid-Cap Stock Rallied Over 11% on Monday; Surges Almost 30% in 11 Sessions

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This Mid-Cap Stock Rallied Over 11% on Monday; Surges Almost 30% in 11 Sessions
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the auto parts company JBM Auto Ltd (NS: JBMA ) rallied 11.08% to end Monday’s session at Rs 1,154.3 apiece, continuing its upward spree. The stock surge comes as a renewed vigour ahead of the company’s board meeting on Wednesday.

On November 19, 2021, JBM Auto informed that its board of directors would meet on December 8, 2021, for consideration and approval of the proposal to split the stock from a face value of Rs 5 to a lower level, and matters related to it.

The company’s stock has maintained its northward movement since the board of directors’ meeting announcement and has surged almost 30% since then. The stock has hit a fresh 52-week high today of Rs 1,189.70/share. Over the past month, the auto parts stock has zoomed 87%.

This is because investors are enthusiastic about the stock split possibility. Splitting a stock typically increases the stock’s liquidity in the capital market and makes it more affordable for small investors. Doing so increases the number of shares in the market, while keeping the stock’s market capitalization unchanged.

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