If you are among those investors who prefer stocks that offer additional benefits such as bonus shares and dividends, then VRL Logistics has brought some exciting news. The company has announced a 1:1 bonus share issue along with a record dividend payout of ₹15 per share. Let’s understand why this is significant for investors.

VRL Logistics: Market Performance Overview

On 4 July 2025, the Indian stock market saw a decline, with Nifty slipping below 25,500 and Sensex hovering around 83,000. Mid-cap and small-cap indices were also in the red. However, VRL Logistics remained in the spotlight due to two major corporate actions:

• 1:1 Bonus Shares: For every 1 share held, shareholders will receive 1 free share.
• Final Dividend of ₹10 per share: With this, the total FY25 dividend becomes ₹15 per share, the highest in the company’s history.

What Does a 1:1 Bonus Mean?

A bonus share issue means the company is distributing free additional shares to its existing shareholders by drawing from its reserves and profits.

• Bonus Ratio: 1:1 (own 1 share → get 1 free share)
• Record Date: Yet to be announced
• Bonus shares will be credited by: 2 September 2025

Impact on Share Price

In the short term, the share price will adjust proportionately, but in the long term, this reflects the company’s strong financial confidence.

Dividend Announcement

VRL Logistics has declared a final dividend of ₹10 per share for FY25, taking the total dividend to ₹15 per share.

• Current stock price: ~₹650
• Dividend yield: ~2.3%, which is higher than many fixed deposits
• The company has healthy cash flow, low debt (@0.4x debt-to-equity), and improving ROCE/ROE, indicating financial strength.

Why Did the Company Take This Step?

• Margin Improvement: The company exited low-margin contracts, improving overall profitability.
• Volume Decline, but Profitability Rose: Even with slightly lower tonnage, profit margins improved.
• Strong Long-Term Returns:
  • 5-year return: +269%
  • Last 3 months: +20% growth

Is VRL Logistics Still a Good Investment?

While the stock has remained flat in the past year, the business fundamentals and expansion strategy suggest strong long-term potential.
If you are a long-term investor, this stock may continue to add value to your portfolio.

Conclusion

VRL Logistics has rewarded its shareholders with both bonus shares and the highest-ever dividend payout, reflecting solid business confidence and growth stability.

However, as with any stock investment, market volatility exists — so conduct your own research or consult a financial advisor before making decisions.