BEML Ltd. Stock Adjusts for 1:2 Split on Monday; September Quarter Results Due Wednesday

State-run BEML Limited's stock will be in focus as it begins trading adjusted for a 1:2 stock split from Monday, November 3. This means each share with a face value of ₹10 has been divided into two shares, each with a face value of ₹5. The record date for this split is also Monday. A stock split is a corporate action taken to increase the number of outstanding shares, making them more accessible to a wider range of investors by lowering the per-share price. For instance, if an investor held 100 shares, they will now hold 200 shares, with the price per share adjusted accordingly, though the total value of their investment remains unchanged. This is BEML's first stock split or bonus issuance. Additionally, the company is scheduled to announce its financial results for the September quarter on Wednesday, November 5. BEML shares closed 1% lower last Friday at ₹4,391, have been flat over the past month, but have gained 6.5% year-to-date, outperforming the Nifty PSE index.

Impact The stock split is likely to enhance the liquidity of BEML shares and potentially attract more retail investors due to the lower price point. The upcoming September quarter results are a critical event that could significantly influence investor sentiment and stock performance, depending on whether the financial outcomes meet or exceed market expectations. Investors will be closely watching both the split's effect on trading dynamics and the company's profitability. Rating: 6/10

Difficult terms: Stock Split: A corporate action where a company divides its existing shares into multiple shares. For example, a 1:2 stock split means one share is divided into two. This reduces the per-share price but increases the number of outstanding shares, without changing the total market value of the company or an investor's holding. Record Date: The specific date used by a company to determine which shareholders are eligible to receive a dividend, stock split, or other corporate action. Anyone holding shares on this date is entitled to the benefit.