Bemco Hydraulics Announces 1:10 Stock Split and 1:1 Bonus Issue to Boost Liquidity and Investor Participation

Bemco Hydraulics Ltd., a leading Indian manufacturer of hydraulic presses and re-railing equipment, has announced a major corporate action aimed at enhancing shareholder value and market accessibility. The company’s Board of Directors has approved a stock split in the ratio of 1:10, alongside a 1:1 bonus issue. These twin moves are expected to improve liquidity, attract retail investors, and reflect the company’s confidence in its long-term growth trajectory.

Key highlights from the announcement:  
- Stock split approved in the ratio of 1:10, subdividing each equity share of face value ₹10 into ten shares of ₹1 each  
- Bonus issue declared in the ratio of 1:1, granting one fully paid equity share of ₹1 face value for every existing share  
- Record date for both actions set as July 25, 2025  
- Corporate actions expected to be completed by August 29, 2025, subject to necessary approvals  
- Shares surged to ₹2,705.15, hitting a 2 percent upper circuit following the announcement

Rationale behind the stock split and bonus issue:  
Bemco’s decision is rooted in strategic objectives aimed at improving market dynamics and shareholder engagement.  
- The stock split will make shares more affordable for small investors, increasing retail participation  
- Enhanced liquidity is expected to reduce volatility and improve price discovery  
- The bonus issue rewards existing shareholders and signals strong financial health and confidence in future earnings  
- These actions align with Bemco’s broader goal of democratizing ownership and expanding its investor base

Financial performance and growth momentum:  
Bemco Hydraulics has demonstrated robust financial growth, reinforcing the timing of its corporate actions.  
- Revenue rose 39 percent from ₹28.32 crore in Q4 FY2024 to ₹39.09 crore in Q4 FY2025  
- Net profit surged 145 percent from ₹2.15 crore to ₹5.28 crore during the same period  
- Strong order book and operational efficiency contributed to margin expansion  
- The company’s advanced manufacturing capabilities and precision engineering tools support large-scale assignments

Operational strengths and client portfolio:  
Bemco’s reputation in the hydraulic engineering space is backed by its technical prowess and client diversity.  
- The company manufactures a wide range of hydraulic presses, re-railing systems, wheel fitting presses, and straightening presses  
- Equipped with CNC lathes, jig boring machines, and thermal stress relieving furnaces for high-precision fabrication  
- Clients include industry leaders such as Siemens, ABB, BHEL, Bharat Forge, Ashok Leyland, and BEML  
- Strong presence across automotive, engineering, and public sector domains enhances credibility and growth prospects

Market sentiment and investor response:  
The twin corporate actions have generated positive buzz in the market.  
- Shares hit consecutive upper circuits in recent sessions, reflecting bullish investor sentiment  
- Analysts view the stock split and bonus issue as value-accretive moves that could unlock further upside  
- The company’s market capitalization now stands at approximately ₹591.54 crore  
- Retail investors are expected to benefit from increased affordability and improved trading volumes

Outlook for FY2026 and beyond:  
Bemco Hydraulics is well-positioned to capitalize on infrastructure growth and industrial modernization.  
- Continued focus on innovation, capacity expansion, and client diversification  
- Plans to explore export markets and strategic partnerships for global reach  
- ESG compliance and digital integration to remain key pillars of future strategy  
- The stock split and bonus issue set the stage for broader investor engagement and long-term value creation

Bemco Hydraulics’ decision to split its shares and issue bonuses marks a pivotal moment in its corporate journey. With strong fundamentals, a loyal client base, and a clear growth roadmap, the company is poised to attract a wider investor pool and reinforce its leadership in the hydraulic engineering space.

Sources: Goodreturns, Trade Brains, DSIJ, Bemco Hydraulics Investor Filings