The shares of Dr Lal PathLabs Ltd climbed more than 3 percent on October 27, after the diagnostics company announced that its board of directors will meet on October 31 to consider a bonus issue of shares.
The stock closed at ₹3,141.75 per share on the NSE, after touching an intraday high of ₹3,194, marking a rise of nearly 5 percent earlier in the day.
Board to Discuss Bonus Shares and Dividend
In an exchange filing post market hours on October 24, Dr Lal PathLabs informed that the upcoming board meeting will also review and approve the unaudited standalone and consolidated financial results for the second quarter (Q2 FY26).
Alongside the results, the board will consider declaring a second interim dividend for the current financial year. The company had earlier declared a first interim dividend of ₹6 per equity share for FY26.
Importantly, the firm stated that the board will also deliberate on the issuance of bonus shares, subject to shareholder approval and in line with regulatory requirements. However, it did not specify the bonus issue ratio.
What is a Bonus Issue?
A bonus issue refers to free shares issued to existing shareholders, typically drawn from a company’s accumulated reserves. While the move doesn’t affect the company’s market capitalization, it increases the number of outstanding shares, enhancing liquidity and often making the stock more accessible to investors.
Such issuances are often viewed as a positive signal of financial strength and growth prospects. Earlier this month, Dr Lal PathLabs’ peer Thyrocare Technologies announced a 2:1 bonus issue, reflecting a similar trend in the diagnostics space.
Stock Performance Snapshot
Over the past five days, Dr Lal PathLabs’ shares have slipped about 1.5 percent, but gained nearly 12 percent in the last six months. Year-to-date, the stock is up around 3 percent, and has risen 1 percent over the past year.
The company currently has a P/E ratio of around 50 and a return on equity (ROE) of 25 percent, with a market capitalization exceeding ₹26,320 crore, according to BSE data.
Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy, sell, or hold any stock. Investors should consult their financial advisors before making investment decisions.
