Patanjali Foods announces bonus shares, stock barely moves
Patanjali Foods's stock barely moved on Thursday, even with a lot of trading action, after the company revealed a bonus share issue.
This move signals the company's confidence and follows years of strong growth.
Why bonus shares are a big deal
A bonus share issue means existing shareholders get extra shares for free—always nice if you're invested.
It's also a sign the company feels good about its finances, thanks to big jumps in both revenue and profit over the last few years.
Why the company is rewarding shareholders right now
Patanjali Foods has seriously boosted its numbers: revenue more than doubled since 2019 and profits have turned around impressively.
The company's debt is now super low (debt-to-equity at 0.07), showing a much stronger balance sheet, while valuation metrics remain solid—all reasons they're rewarding shareholders right now.