1:10 stock split effect: Sigachi Industries shareholders earn 700% in YTD

1:10 stock split effect: Ace investor Charlie Munger once said that money is not in buying and selling of stocks but in waiting. The former Vice chairman of Berkshire Hathaway wanted to convey from this statement that a stock market investor should try and hold a stock as long as one long because a long-term investor does not just gain from stock appreciation but from various other corporate announcements like bonus shares, stock split, dividend, buyback of shares, etc. These announcements might not look big in the short term but they impact a lot on the returns that a long-term investor gets.

To understand how these corporate announcements impact one’s return, we need to look at Sigachi Industries share price history. This stock traded ex-split on 9th October 2023 in a 1:10 ratio. This means the shareholding of a beneficiary shareholder of the Sigachi share split would have surged 10 times as one stock of the company was subdivided into 10 shares.

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1:10 stock split effect

If a Sigachi shareholder had remained invested in the scrip after the 1:10 stock split, Re one rise in the stock would have led to a 10 per share rise in the portfolio of a Sigachi Industries shareholder who benefitted from the stock split. In year-to-date (YTD) time, Sigachi share price ascended from around 51.40 to 87.95 apiece, logging to the tune of a 70 percent rise in this time. So, a Sigachi shareholder who benefitted from a 1:10 stock split would have got 10 times the return on one’s original investment. In other words, a 1:10 stock split would have led to a 700% rise in one’s money as a Re 1 rise meant a 10 rise in one’s profit.

Sigachi share price history

Sigachi Industries share touched a new 52-week high during Friday deals when it climbed to an intraday high of 87.95 apiece. The stock has been in continuous uptrend and it has risen to the tune of 300 percent from its 52-week low of 21.98 per share level. Sigachi shares are available for trade on both BSE and NSE and its current market cap is 2,640 crore. The current trade volume of the stock on NSE is around 41.40 lakh and nearly one hour of trade is still left on Friday.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 23 Feb 2024, 03:04 PM IST

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