Bharat Dynamics hits new high

Bharat Dynamics is currently the top gainer on the BSE; the stock in fact been on a high for almost a week now. From its close of Rs.1406.70, it opened today at Rs.1442.70 and went on to hit a new 52-week high at Rs.1650, a rise of over 17%.

This PSU defence stock went ex-split today.

Today is the record date fixed for the purpose of determining the eligibility of shareholders for sub-division/ split of existing 1 equity share of face value of Rs 10 into 2 equity shares with face value of Rs 5 each.

Stock splits neither add nor subtract fundamental value. The split increases the number of shares outstanding, but the company's overall value does not change. Immediately following the split the share price will proportionately adjust downward to reflect the company's market capitalization – that’s how it usually works. Stock split typically increases retail participation.

This Hyderabad based Mini-Ratna makes ammunitions and missile systems and has its own R&D, which is focussed on design and engineering activities.