JBM Auto, IGL, Senco Gold: Why these 3 stocks showing up to 50% fall in some trading apps today

Select stocks including JBM Auto, Indraprastha Gas and Senco Gold are showing up to 50 per cent fall in some trading apps today as all these three stocks turned ex-bonus or ex-split, adjusting to the pre-announced corporate actions. Shares of Indraprastha Gas Ltd traded ex-bonus today, while shares of JBM Auto Ltd and Senco Gold Ltd traded ex-split in Friday's trading session, indicating a sharp downside in their stock price.

Shares of Indraprastha Gas (IGL) settled at Rs 396 on Thursday and opened at Rs 197.85 on Friday, post the adjustment of 1:1 bonus. t is possible that trading apps of certain brokerages might be showing the unadjusted Wipro share price for yesterday and, thus, suggesting a 50 per cent-odd fall on the counter.

In the December 2024 quarter, IGL reported a 31.2 per cent YoY fall in the net profit at Rs 326.55 crore, while revenue from operations increased 5.7 per cent to Rs 3,758.76 crore. Ebitda for the quarter dropped about 27 per cent to Rs 450.34 crore, it said earlier this week.

Elara Capital recently upgraded Indraprastha Gas to 'reduce' from 'sell' earlier. However, its revised target price (on an adjusted) basis turns out to be Rs 191.5 apiece (Rs 383 prior to adjustment). On the other hand, HDFC Securities has maintained its 'buy' rating on IGL with an adjusted target price of Rs 257.5 per share (Rs 515 prior to adjustment).

A bonus issue increases the number of outstanding equity shares, but reduces share price in proportion to the number of bonus shares issued. Bonus shares are issued from free reserves and surplus of the company, with the aim of increasing liquidity on the counter.

Similarly, shares of JBM Auto settled at Rs 1,495 (unadjusted) in Thursday session, but opened at Rs 757.05 on Friday, signaling nearly a 50 per cent fall. The auto ancillary player has split the face value of its shares to Re 1 from Rs 2 earlier, with some trading applications indicating a 50 per cent fall in the counter. The company had fixed Friday, January 31, as the record date for the stock split.

Automotive and EV firm JBM Auto reported an 8.3 per cent YoY increase in net profit at Rs 52 crore for the third quarter ended December 31, 2024. Its revenue from operations increased 3.7 per cent YoY to Rs 1,396 crore, while Ebitda was up 11 per cent YoY to Rs 175 for the given period.

Shares of Senco Gold ended at Rs 905 (unadjusted) in Thursday's trade, but opened at Rs 445 on Friday, post split adjustment. The company announced to halve its face value from Rs 10 to Rs 5, splitting its shares in two. The company had fixed Friday, January 31, as the record date for the stock split. Senco is yet to announce its earnings for the Q3FY25.

A stock split is a corporate action where a company increases the number of its outstanding shares by issuing additional shares to existing shareholders, in a predetermined ratio. However, the value of shares is adjusted in the prescribed manner.