This stock has tripled in less than two months

• Follow

Shares of Tide Water Oil company are on an unstoppable rally. In the last seven trading sessions, the scrip was locked in the 5% upper circuit. Even in today’s trade it was locked in the upper circuit and hit a 52-week high of Rs 18,468.75. However, the circuit opened, and the stock is currently trading at Rs 17,100 apiece. The stock has skyrocketed 49% in the month of July alone from Rs 12,401.90 on June 30, 2021, to Rs 18,468.75 in today’s trade.

The stock continued its northward movement after the company announced a stock split and bonus issue plan on May 26 (closed at Rs 5,997.45 after rallying 8%). On June 10, the company announced 1:1 bonus issue i.e. one bonus share for every share held in the company on the record date. The company also declared a sub-division of the face value of equity shares from Rs 5 to Rs 2. The company said the board of directors considered that the sub-division will be in the interest of the company.

That apart the board also recommended a final dividend of 4,000% (Rs 200 per share) on a face value of Rs 5 per share (i.e. before sub-division of shares and bonus issue) for the financial year 2020-21. The stock will turn ex-dividend on July 19, 2021.

Tide Water Oil has a low equity base of 3.48 million shares, with promoters holding 57.28% of the shares. Two state-owned companies, United India Assurance Company (6.88%) and Life Insurance Corporation of India (4.22%), collectively hold an 11.11% stake in the company. While individual shareholders have 22.36% stake and others have 6.20%, the March 2021 shareholding pattern data shows.

Tide Water Oil Company may be unfamiliar to many. The company manufactures and markets Veedol brand of lubricants. Tide Water has tie-ups to manufacture genuine oils with a number of renowned OEMs in the automotive and industrial equipment segment.