Bonus Shares: Jewellery Stock Jumps 15% as Company to Consider a Bonus Issue

Synopsis: Mini Diamonds will consider a bonus share issue on April 23, subject to shareholder approval, signaling potential value creation and improved stock liquidity for investors.

This Penny Jewellery Stock, engaged in the manufacturing, processing, and export of polished diamonds and jewellery, catering to domestic and international markets with quality craftsmanship, jumped 14.87 percent after the company’s board to consider a bonus issue.

With a market capitalization of Rs. 220.49 crores, the share of Mini Diamonds (India) Limited has reached an intraday high of Rs. 19.00 per equity share, rising nearly 14.87 percent from its previous day’s close price of Rs. 16.54. Since then, the stock has retreated and is currently trading at Rs. 18.71 per equity share. 

Reason Behind the Surge:

Mini Diamonds (India) Limited has announced that its Board of Directors will meet on April 23, 2026, to consider key proposals, including the issuance of bonus shares. If approved, the proposal will be subject to shareholders’ approval. The move signals the company’s intent to reward shareholders and enhance liquidity in the stock. Bonus issues are often seen as a positive indicator of financial strength and management confidence in future growth prospects.

Company Overview:

Mini Diamonds India Limited was founded in 1987 and is an Indian company engaged in the manufacture, processing, and export of cut and polished diamonds. Established in Mumbai, it operates primarily within the global diamond and jewelry industry, supplying polished stones to international markets.

Mini Diamonds India Limited specializes in sourcing rough diamonds, cutting and polishing them to precise specifications, and distributing them to jewelry manufacturers and wholesalers. Its product range spans various shapes, sizes, and grades of polished diamonds, catering to both domestic and export customers.

Recent Quarter Results:

Coming into financial highlights, Mini Diamonds (India) Limited’s revenue has increased from Rs. 115.66 crore in Q3 FY25 to Rs. 166.64 crore in Q3 FY26, which has grown by 44.08 percent. The net profit has also grown by 44.89 percent from Rs. 2.25 crore in Q3 FY25 to Rs. 3.26 crore in Q3 FY26.

Mini Diamonds (India) Limited’s revenue and net profit have grown at a CAGR of 54.54 percent and 73.21 percent, respectively, over the last two years.

In terms of return ratios, the company’s ROCE and ROE stand at 16.2 percent and 12.6 percent, respectively. Mini Diamonds (India) Limited has an earnings per share (EPS) of Rs. 0.44, and its debt-to-equity ratio is 0.03x.

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