Mahindra Holidays To Consider Plan To Issue Bonus Shares; Stock Gains
Mahindra Holidays & Resorts India Ltd.’s stock gained after the company said it would consider the proposal for issuance of bonus equity shares.
The board of directors at its meeting scheduled to be held on July 29 will consider this proposal, along with approving unaudited financial results for the first quarter ended June, according to the exchange filing of the Mahindra Group's leisure and hospitality firm.
This comes a day after another group company Mahindra Lifespace Developers Ltd. announced plans to consider a free share issue on July 28. Its stock, too, jumped as much as 18.7% to a 13-year high on Friday.
Shares of Mahindra Holidays gained as much as 9.3%—the most since July 13—to Rs 336.45 around noon. The scrip has risen 3.8% in the past five days, and rallied 34% in the last 30 days. So far this year, the stock has advanced 41.5% compared with S&P BSE Sensex’s 11.5% jump.
Of the three analysts tracking Mahindra Holidays, two have a ‘buy’ rating and one suggests a ‘hold’, according to Bloomberg data. The average of 12-month consensus price targets implies a downside of 28.6%.