Nearly 1700% Returns in a Year: Bemco Hydraulics Announces Ex-Bonus & Ex-Split

Bemco Hydraulics, a small-cap company in the hydraulics equipment sector, has become the talk of the market after delivering extraordinary returns of 1672% in just one year. Now, the company is once again in focus as it has announced two major corporate actions – a 1:1 bonus issue and a 10:1 stock split. The record date to determine eligible shareholders has been fixed for Friday, August 22, which means investors must buy shares before the market closes today to qualify.

Source: Economic Times

These moves are expected to reward existing shareholders, increase liquidity in the stock, and make the shares more affordable for retail investors.

Bemco Hydraulics’ Stellar Performance

Bemco Hydraulics is an engineering company that designs and manufactures hydraulic presses, machines, and systems for industrial applications. Based in India, it has established a niche presence in the hydraulics sector. 

Over the past year, Bemco Hydraulics has surprised investors with its incredible rally. The company’s stock has delivered 1672% returns in just 12 months, turning into a true multibagger. For instance, an investment of ₹1 lakh a year ago would now be worth over ₹17 lakh. Such steep growth has placed the company in the spotlight and raised interest among both institutional and retail investors.

Source: BSE

Details of the Bonus Issue

The company has announced a 1:1 bonus issue, which means shareholders will receive one additional share for every share they currently hold. For example:

• If an investor holds 50 shares, they will receive 50 extra shares after the bonus issue.
• Their total holding will therefore increase to 100 shares.

A bonus issue does not change the overall value of an investor’s portfolio immediately, but it increases the number of shares, making trading easier and boosting liquidity in the market.

Stock Split in the Ratio of 10:1

Along with the bonus, Bemco Hydraulics has also approved a stock split in the ratio of 10:1. This means the face value of each share will be reduced from ₹10 to ₹1, and the number of shares will increase tenfold.

For instance:

• Before the split, if an investor holds 100 shares of face value ₹10 each, the total face value is ₹1,000.
• After the split, they will hold 1,000 shares of face value ₹1 each, keeping the total value unchanged.

This makes the stock more accessible to small investors, as the price per share will be lower post-split.

Source: Economic Times

Combined Impact of Bonus and Stock Split

When both the bonus issue and stock split are applied together, the increase in the number of shares is even more significant. Let us take an example for better clarity:

• Suppose an investor holds 50 shares of Bemco Hydraulics (face value ₹10 each).
• After the 1:1 bonus issue, the holding will become 100 shares.
• Following the 10:1 stock split, the number of shares will further increase to 1,000 shares of face value ₹1 each.

This shows how both actions together multiply the number of shares held, even though the overall value of the investment remains the same initially.

Let’s look at the financials of the company. 

BEMCO Hydraulics

Market Cap	CMP	PE	ROCE	ROE	Revenue(for quarter ending June 2025)	Profit(for quarter ending June 2025)
₹ 753 Cr	₹3,444	55.8	23.7%	19.9%	11.71 Cr	1.44 Cr

Source: Screener

Why Do Companies Announce Bonus Issues and Stock Splits?

Corporate actions like bonus issues and stock splits are not just cosmetic moves. They serve several purposes:

1. Rewarding Shareholders – Companies issue bonus shares to acknowledge investor support and reward them without any additional cost.
2. Increasing Liquidity – With more shares in circulation, trading volumes rise, which can reduce volatility.
3. Improving Accessibility – A stock split lowers the price per share, making it easier for retail investors to participate.
4. Boosting Investor Confidence – Such announcements often indicate that the company is confident about its financial strength and growth prospects.

What Should Investors Do?

With August 22 as the record date, investors who want to benefit from these corporate actions must ensure they own shares before today’s market closing. Only shareholders on record will be eligible for the bonus and split.

However, investors should also understand that:

• The immediate value of their investment will not change after the adjustments.
• The real benefit lies in better liquidity, easier trading, and possibly higher demand from retail investors in the future.
• The company’s long-term performance and fundamentals remain the key factors to watch.

Market Expectations

Given the huge returns already delivered by Bemco Hydraulics, analysts expect significant interest in the stock around the record date. Retail investors may find it more attractive once the stock becomes more affordable post-split. However, experts also advise caution as stocks that rally too sharply in a short time can be volatile.

Conclusion

Bemco Hydraulics has rewarded its shareholders with 1672% returns in just one year, and now, through a 1:1 bonus issue and a 10:1 stock split, the company is further enhancing shareholder value. For existing investors, this move is a welcome reward, while for new investors, it opens the door to participate at lower entry prices.

While these corporate actions make the stock more liquid and accessible, investors must remember that long-term gains will ultimately depend on the company’s business performance and industry outlook.

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