The electronics sector in India is currently experiencing a downturn, with shares of several prominent companies sliding following disappointing financial results from Dixon Technologies. As of January 23, 2025, the ripple effects of these results have been felt across the industry, leading to significant declines in stock prices for various players.
This implies that those people who desire to be part of the stock split must own the shares by this day, and any person who does not own the shares must buy them today.
In its filing with the regulatory body, the firm stated: “This is to advise that Tuesday, the 3rd December 2024, has been set as the Record date to identify shareholders who are eligible for sub-division / split of the Equity share of Rs. 10/- (Rupees Ten only) each fully paid – up into 10 (Ten) Equity Shares of Re. 1/- (Rupee One only) each fully
This means that one has to own the shares of the company by today to be in a position to be part of the said stock split as in implementing the T+1 settlement system, the record date and the ex-date will always be the same with the exception where there is a market holiday after the ex-date.
Those who buy the stock at least a single day before the ex-date are entitled to receive the stock split as the settlement usually takes place the next day. This is not available for those who bought the stock during the ex-date or the date on which the announcement was made.
Pursuant to the information collected from Trendline, this is the first time that the company has done a share split.
The performance of the shares in one year return is a whopping 1358.71%. The current year up to now return and the last six months’ return are 829.53% and 57.61,% respectively.
Future Outlook
While the current situation appears bleak for many electronics companies, some analysts believe that there may be opportunities for recovery in the long term. Companies like Bharat Electronics are still considered significant players within their respective markets and may benefit from upcoming government contracts and infrastructure projects.
Investors are advised to remain vigilant and monitor upcoming earnings reports closely to gauge whether this downturn is a temporary setback or indicative of deeper issues within the sector. As companies adapt to changing market conditions and consumer preferences, there may be potential for recovery if they can effectively manage costs and innovate their product offerings.