Small Cap Stock Supported By LIC Sets Record Date For 100% Dividend Payout

Dhanuka Agritech, one of India's top agro-chemical companies, achieved a market valuation of Rs 3,684.11 Crore during the closing session on Friday. The company recently declared a 100 per cent dividend for the financial year 2022-2023, with a record date of 21 July 2023.

According to a stock exchange filing, the Board of Directors recommended a dividend of Rs 2 per equity share, absorbing a total of Rs 91,156,648 subject to approval at the Annual General Meeting. The company has announced a total equity dividend of Rs 8 per share for the financial year ending in March 2023, resulting in a dividend yield of 1.01 per cent based on the current share price of Rs 790.95. Dhanuka Agritech has a track record of issuing 28 dividends since 4 September 2003.

In terms of financial performance, the company reported a consolidated net income of Rs 385.97 Crore in Q4FY23, representing a YoY increase of 16.79 per cent from Q4FY22. Net profit for the March 2023 quarter reached Rs 65.30 Crore, showing a YoY growth of 20.04 per cent from the previous year. The net income for the fiscal year 2022-2023 was Rs 1,744.97 Crore, reflecting a YoY increase of 15.46 per cent compared to the previous year. The net profit for the twelve months ended in FY23 was Rs 233.50 Crore, up 11.78 per cent YoY from the same period in FY22.

On the stock market, Dhanuka Agritech's shares closed at Rs 790.95 on the BSE, marking a slight increase of 0.12 per cent from the previous close. The stock reached a 52-week high of Rs 817.60 on 6 June 2023, and a 52-week low of Rs 603.05 on 3 April 2023. The current market price of the stock is trading 3.25 per cent below the 1-year high and 31.15 per cent above the 1-year low. As of Q4FY23, the shareholding pattern showed the promoter holding at 70.19 per cent, FIIs at 4.05 per cent, DIIs at 16.63 per cent, and the public at 9.13 per cent. The shareholding pattern for January to March 2023 quarter revealed that insurance giant LIC held fully paid-up equity shares representing a 3.16 per cent stake in the company, equivalent to 14,42,199 shares.