FMCG stock rallies 20% on dividend, bonus issue intimation; board meeting on June 25; Buy or sell?

livemint.com:

Milkfood Ltd Share Price: Shares of fast-moving consumer goods (FMCG) major Milkfood Ltd rallied 20 per cent on Thursday, June 20, after the company announced that it may consider announcing an interim dividend and a bonus issue soon. The FMCG major declared that it will conduct its board meeting on June 25 where it may consider approving the dual corporate action.In a regulatory filing to the stock exchanges, Milkfood said, ‘’We hereby inform you that a Meeting of the Board of Directors of the Company will be held on Tuesday, the 25th day of June, 2024 to inter alia, consider and approve the following matter:1.

The proposal for payment of interim dividend if any, on the equity shares of the company.2. The proposal for bonus issue along-with other matter, if any, as may be permitted under applicable laws, subject to such regulatory/statutory approvals as may be required, including the approval of the shareholders of the Company.3.

The proposal for sub-division of company’s equity shares having face value of ₹10/- each and matters related thereto, as may be permitted under applicable laws, subject to such regulatory/statutory approvals as may be required, including the approval of the shareholders of the company.''Also Read: MSP hike likely to benefit FMCG, auto, banking and consumer stocksOn Thursday, shares of Milkfood opened at ₹576.00 and gained 17.86 per cent to hit an intra day high of ₹678.90 before settling 20 per cent higher at ₹678.90 apiece on the BSE. According to Trebdlyne data, Milkfood has given 3.9 per cent returns to investors in the last one month.