Tata Steel shares were the top Sensex gainers today a day after they turned ex-stock split in the ratio of 1:10. The shareholders of Tata Steel received 10 shares for each share they were holding or having the delivery in their account as of June 28.
The Tata Group firm had fixed July 29 as the record date to determine the eligibility of shareholders for the split of shares having a face value Rs 10 each.
The numbers of shares have increased by 10 times for those holding the stock. However, the total amount invested remains unchanged.
Companies conduct stock splits primarily to make their stock more affordable for investors. For example, Tata Steel stock was trading near Rs 1,000 before the stock split on Thursday.
The stock closed at Rs 100.35 in the previous session. The stock was the top Sensex gainer today. Tata Steel stock gained 5.08 per cent to Rs 105.45 in early trade on BSE. The stock opened with a gain of 2.64 per cent at Rs 103.
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Shares of Tata Steel are trading lower than 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The stock has lost 28 per cent in a year and fallen 5.44 per cent in 2022.
Total 27.76 lakh shares of the firm changed hands amounting to a turnover of Rs 28.81 crore. Market cap of the firm rose to Rs 1.28 lakh crore on BSE.
On Nifty, the stock rose 4.58 per cent to Rs 104.95 in early trade.
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The Tata Group firm logged a 21 per cent fall in its net profit in the first quarter of the current fiscal. The steel producer reported a consolidated net profit of Rs 7,714 crore in Q1 against Rs 9,768 crore in the corresponding quarter of FY22.
The firm's India business' net profit fell 36.5 per cent compared to the corresponding quarter of FY22. The net profit for India business dipped to Rs 5,783 crore in Q1FY23 against Rs 9,112 crore in Q1FY22.
Motilal Oswal said EBITDA rose to Rs 9,700 crore (-28 per cent YoY/-22 per cent QoQ) and was 25 per cent higher than its estimate of Rs 7,600 crore. The entire EBITDA beat was driven by 7 per cent revenue beat.
Adjusted PAT stood at Rs 6,200 crore (-29 per cent YoY/-22 per cent QoQ) and was 39 per cent ahead of the estimates of the financial services firm.