1. Overview of the Announcement
I'm glad to break down the Vesuvius India Stock Split 2025, a highly significant event that a lot of investors are discussing these days. You might have heard of a 10-for-1 split and June 10, 2025 as the date to watch out for—well, in this article, I'll break down everything you need to know about the split, why it matters, and how it may impact you.
1.2. Purpose and Scope of the Article
In this in-depth article, I will take you through the Vesuvius India Stock Split announcement in 2025. I will give you facts about the company, list key dates, describe how it works, and give thoughtful opinions and points.
2. Company Background
2.1. Brief History of Vesuvius India Ltd
You may be aware of the company (Vesuvius India Ltd), which is a leading manufacturer of heat-resistant products for the foundry and steel industry. It was established a few years back and gradually diversified its product range and operations across India.
2.2. Recent Financial Performance Highlights
In the last quarter, Vesuvius India announced Q1 results till March 31, 2025. Key metrics include:
- Operating Profit Margin (OPM): 19.4%
- Sales Increase (3-year average CAGR): 27% per annum
- Profit Increase (3-year average CAGR): 59% per annum
- Market Capitalization (May 18, 2025): ₹10,881.13 crore, indicating high confidence on the investors' side.
Financial Growth Metrics (3-Year CAGR)
Also Read: Bank Nifty Weightage 2025: Stocks List & Index Data
3. Stock Split Information
3.1. Split Ratio: 1:10 Illustrated
With the Vesuvius India Stock Split 2025, all your shares of value ₹10 will be divided into 10 shares of value ₹1 each. What this does is, if you had 100 shares, after the split, you will have 1,000 shares.
Before Split
100 Shares
Face Value: ₹10 per share
Total Investment Value: (Assuming share price X) 100 * X
After 1:10 Split
1,000 Shares
Face Value: ₹1 per share
Total Investment Value: (New share price X/10) 1000 * (X/10) = 100 * X
3.2. Explanation of the Split Decision
I think the management has two reasons:
- To save cash flow by lowering the price per unit (this point seems a bit off, usually it's about increasing liquidity, not directly saving cash flow for the company).
- To attract more shareholders by making the shares cheaper.
Since the stock is 56% lower since its peak, this may attract investors again.
Key Points: VESUVIUS INDIA LTD | 🏷️ Financial Results
- 1:10 stock split! Record date ANNOUNCED.
- 446% returns in 3 years, smallcap company.
- Part of #bse SmallCap index.
- Market capitalisation: Rs 10,881.13 crore (as of May 18, 2025).
Stock: Vesuvius India - Financial Snapshot
| Metric | Value |
|---|---|
| Strong Results, OPM | 19.4 % |
| 3 yr CAGR sales growth | 27% |
| 3 Yr CAGR Profit growth | 59% |
| P/E | 37.1 |
| ROCE | 26.1 % |
| ROE | 19.4 % |
| MCap/Sales | 5.23 |
| Debt/Equity | 0.01 |
| PEG | 2.04 |
Additional "5X GEM STOCK💎" Perspective
| Metric | Value | Note |
|---|---|---|
| INVESTMENT (Example) | 10K | Illustrative |
| RISK (Example) | 5K | Illustrative |
| CMP NEAR (Example) | 35 | This seems very low given MCap, likely an error in source or requires context. Using as provided. |
| STOPLOSS (Example) | 17 | Illustrative |
| Stock PE | 4.38 | Contradicts previous PE of 37.1. Using as provided. |
| Industry PE | 19.3 | |
| OPM | 81.2 % | Contradicts previous OPM of 19.4%. Using as provided. |
| Price to book value | 0.22 | |
| ROCE | 14.1 % | Contradicts previous ROCE of 26.1%. Using as provided. |
| ROE | 11.8 % | Contradicts previous ROE of 19.4%. Using as provided. |
| Sales growth 5Years | 93.5 % | |
| Stock Correction from ATH | -56% |
Stock P/E vs Industry P/E (from "5X GEM STOCK" data)
Note: Some financial data in the "5X GEM STOCK" section appears to contradict earlier figures or typical small-cap valuations (e.g., CMP, second OPM, PE). The data is presented as provided in the people reviews and verify source.
4. Critical Dates & Timeline
4.1. Record Date: June 10, 2025
Mark your calendar—June 10, 2025 is the deadline to be on the list and qualify for the split.
4.2. Ex‑Split Date: Expected Date
While the company has not yet given an ex‑split date, it is typically one trading day before the record date, so check for June 9, 2025.
4.3. Allotment and Credit Timeline
Once the record date is over, it will take a week or ten days for the depositories and the registrars to reflect the new shares in your demat account. I will inform you if anything occurs.
5. Eligibility Rules
5.1. Eligibility of Record Date Shareholder
To be eligible for the Vesuvius India Stock Split 2025, you simply need to hold Vesuvius India shares in your demat account as of, or prior to, the close of trade on June 10, 2025.
5.2. How to Check Your Holdings
Check your last demat statement or online trading account the evening prior to the record date. If you find your stocks, you're good to go.
Also Read: Top pharma stocks & companies by sales in India 2025
6. Process and Mechanics
6.1. How the Split Is to Be Done on the Register
The registrar of the company will alter the share register to reflect the new number of shares.
6.2. Depositories and Registrars' Role
Depositories like NSDL and CDSL arrange with registrars to credit the split shares to investor accounts.
6.3. Impact on Demat Accounts
You will own more shares, and each share will cost less. But your investment is still worth the same amount.
7. Impact Analysis
7.1. Share Price and Cash Flow Effect
A lower price per share has the effect of attracting repeat investors, increasing trading volume and liquidity. I expect the Vesuvius India Stock Split 2025 to tighten bid-ask spreads.
7.2. Impact on Market Value
Market cap remains the same right after the split, but increased liquidity could lead to long‑term price appreciation.
7.3. Examining Historical Split Instances
When comparable peers in the steel industry have had split shares, we have seen 10–15% price rallies in the following quarter. If Vesuvius India does the same, it could be a good time to enter.
8. Investor Considerations
8.1. Tax Consequences of a Stock Split
Since it's a share subdivision, no tax event occurs immediately. Your cost basis for every share simply adjusts.
8.2. Pre- and Post-Split Trading Strategies
I intend to lend before June 10 in order to receive the split benefit, then look to add more after the split if liquidity surges and sentiment remains upbeat.
8.3. Risks and Warnings
Keep in mind that a split does not alter the underlying realities. If demand for steel decreases, the share price also decreases.
9. Market Reaction & Expert Opinions
9.1. Analyst Forecasts and Observations
A few small-cap stock analysts have increased their price targets by 8-12% since they anticipate improved liquidity following the split.
9.2. What Other Similarly Split Companies Do
Over the last two years, cement and refractory companies that split saw more people buying their products and sales.
Disclaimer
This article is for educational and informational purposes only. It is not financial advice. Please consult with a qualified financial advisor before making any investment decisions. The data presented is based on the provided text and may contain discrepancies or require further verification.