03 Sep , 2022 By : Kanchan Joshi
Investors can also profit from corporate actions like bonus shares, dividend and share buybacks in addition to the upward performance of a stock. By taking bonus shares as an example, stock market watchers should be aware that the shares of GAIL are going to turn ex-bonus next week. GAIL (India) Limited, India's largest natural gas company holding Maharatna status by the government of India, has announced bonus share issuance on 27 July 2022. The corporation will issue bonus shares at a 1:2 ratio. Accordingly, investors will get one bonus share for every two existing shares they hold on the record date.
Due to India's T 2 day trading pattern, the ex-date is typically specified one business day before the record date. Due to the T 2 Settlement, investors are always advised to buy shares one day before the ex-date in order to take advantage of corporate actions like bonus shares. If one purchases GAIL shares on the ex-date, he or she will not be eligible to receive the bonus share because the shares will not be credited to the demat account by the record date. According to data available on the BSE, GAIL has set the record date as September 7, 2022, and the ex-date is September 6, 2022. As a result, investors should purchase GAIL shares before September 6, 2022, in order to get bonus shares.
The firm has issued bonus shares five times since 2008, according to the history of GAIL's bonus issues. In October 2008, the firm announced a bonus issue of 1:2; in March 2017, a bonus issue of 1:3; in March 2018, a bonus issue of 1:3; and in July 2019, GAIL announced a bonus share of 1:1.
GAIL (India) Limited shares ended trading on the NSE on Friday at ?135.20 a piece, down 0.84% from the previous close of ?136.35. The stock price climbed from Rs. 12.19 on July 6th, 2001 to the current market price, representing a multibagger return and an all-time high of 1,009.11%. The stock has dropped 8.28% over the past year, but it has gained 2.85% year to date in 2022. On the NSE, the stock had touched a 52-week-high of ?173.50 on (19-April-2022) and a 52-week-low of ?125.20 on (20-December-2021) indicating that at the current market price the stock is trading 22.07?low the high and 7.98?ove the low.
GAIL is currently trading at a PE (price to earnings) multiple of 4.50 times and 0.92 times its book value, both the ratios are much lower than its peers such as Adani Total Gas, Petronet LNG, Indraprastha Gas, Gujarat State Petronet, Mahanagar Gas, and Deep Industries, making GAIL an undervalued stock for potential investors when compared to its said peers.