Stocks of Ruby Mills have been rising. Know why

Textiles major Ruby Mills rose in Tuesday's trade after the company's board said it would issue bonus shares.

Ruby Mills' board of directors will meet on August 31st to decide the ratio of bonus shares, the company said in a statement to the stock exchange. Ruby Mills has an equity base of 4.18 crore rupees and a face value of 5 rupees per share.

The company's sales have been growing at 8.3 percent compounded over the past 5 years and the profit after tax has surged 75 percent compounded over the same period. Ruby Mills trades at 0.8 times book value of 401 rupees.

The stock was up 3.85 rupees, or 1.2 percent, at 336 rupees on the National Stock Exchange, where 4066 shares were traded compared with a 5-day average of 6,357 shares.

Ruby Mills has seen its market capitalisation gain 16 percent in the past one year to 277 crore rupees.

Image credit: Indiatimes