1:2 Bonus Shares: Telecom stock jumps after board approves bonus issue

Synopsis:
Valiant Communications jumped sharply after the board approved the issuance of bonus shares in the ratio 1:2 and is expected to be credited to shareholders on or before November 2, 2025, pending approval at the upcoming AGM scheduled for September 30, 2025.

The shares of this communication equipment manufacturer are in focus as the board has finally approved the issuance of bonus shares. However, the record date is not yet fixed, and a call for such will be taken in their forthcoming Annual General Meeting scheduled to be held on Tuesday, September 30, 2025.

With a market capitalization of Rs 705 crore, the shares of Valiant Communications Ltd are currently trading at Rs 924 per share, representing a decline of 10 percent from its 52-week high of Rs 1,021.30 per share. Over the past five years, the stock has delivered a multibagger return of 2,300 percent.

Bonus Issue

Valiant Communications announced that its board has approved the issuance of bonus issue at a ratio of 1:2. This means that for every two shares you currently own, you’ll receive one fully paid-up bonus share.

The company plans to issue a total of 38,14,030 bonus shares, which will increase its share capital from Rs 7.63 crore to Rs 11.44 crore after the issuance. These bonus shares will come from the company’s reserves and are expected to be credited to shareholders on or before November 2, 2025, pending approval at the upcoming AGM scheduled for September 30, 2025.

Bonus shares are essentially free shares given to existing shareholders based on how many shares they already own. These shares typically come from the company’s accumulated profits or reserves, allowing the company to reward its shareholders without having to pay out cash dividends. 

While the overall value of an investor’s holdings stays the same, the number of shares they own increases, and usually, the stock price adjusts accordingly after the bonus shares are issued.

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Financial Highlights

The company’s revenue for Q1 FY26 was Rs 18.32 crore, representing a 34 percent increase from Rs 13.66 crore in the same quarter last year. Additionally, on a sequential basis, revenue grew by 14 percent from Rs 16.12 crore in Q4 FY25. 

Regarding its profitability, the company reported a 51 percent net profit increase to Rs 4.72 crore in Q1 FY26, compared to Rs 3.12 crore in Q1 FY25. Additionally, on a QoQ basis, it surged by 12 percent from Rs 4.22 crore.

The stock delivered an ROE and ROCE of 16.95 percent and 22.10 percent respectively, and is currently trading at a high P/E of 63x as compared to its industry average of 46.31x.

Valiant Communications Limited is a company based in India that specializes in making communication equipment and offering related services. They focus on areas like transmission, time and frequency synchronization, and cybersecurity solutions tailored for various utility sectors, including power, oil and gas, railways, metro communications, airports, and mobile backhaul. 

Their product lineup features GPS/GNSS-based master clocks, IEEE 1588v2 PTP solutions, NTP time servers, and sub-master clocks. With a manufacturing facility in New Delhi, Valiant operates not just in India but also in the U.S., Europe, and other international markets.

Written by Satyajeet Mukherjee

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