Rs 14/Share Dividend: Multibagger Stock To Trade Ex-Dividend For 700% Next Week: Buy?

Banco Products (India) is a small-cap Consumer Discretionary company that recorded a market cap of Rs 3,682.50 Cr during Friday's closing session. The firm specialises in engine cooling and sealing systems for both automotive and industrial applications, and it is a leader in the field. The company has declared a final dividend of 700% for FY23 and the stock is going to trade ex-dividend next week on 7th September as per the data available on BSE.

Banco Products Dividend

"The Register of Members and the Share Transfer Books of the Company shall remain closed from 8 September, 2023 to 22' September, 2023 (both days inclusive) for the purpose of ascertaining the entitlement for payment of dividend. Dividend upon its declaration at the Annual General Meeting will be paid @ Rs.14.00 per Equity Share of the Company on or after 4 October, 2023 to those members whose names appear on the Register of Members of the Company on the Book Closure Date," said Banco Products in a stock exchange filing.

Banco Products (India) has announced an equity dividend of 1100.00% at a face value of Rs 2, or Rs 22 per share, for the financial year ended March 2023. This yields a dividend of 4.27% at the current share price of Rs 514.90. The company has a solid track record of dividend declarations during the past five years. Banco Products (India) Ltd. has issued 31 dividends since July 2, 2001, according to Trendlyne statistics.

Banco Products Financials

On a standalone basis, the company reported net sales of Rs 272.36 crore in the June 2023 quarter up 8.24% from Rs. 251.62 crore in the June 2022 quarter. Its net profit was Rs 110.34 crore in the first quarter of FY24, up 226.84 per cent from Rs 33.76 crore in the same period of FY23. Its EBITDA was Rs 129.67 crore, up 179.4 per cent from Rs 46.41 crore. From Rs. 4.72 in the same quarter of FY23 to Rs. 15.43 in the quarter ending June 2023, Banco Products' earnings per share grew.

The company's net sales climbed 27.98% YoY to Rs. 749.36 crore in the June 2023 quarter from Rs. 585.52 crore in the June 2022 quarter on a consolidated basis. Its net profit jumped by 98.93% to Rs. 68.81 crore in Q1FY24 from Rs. 34.59 crore in Q1FY23, and its EBITDA improved by 66.56% to Rs. 113.11 crore from Rs. 67.91 crore. The consolidated EPS for Banco Products improved from Rs. 4.84 in the same quarter of FY23 to Rs. 9.62 in the June 2023 quarter.

Banco Products Share Price Target

"After a Strong Upside momentum in the script, we are currently witnessing a Volume contraction Pattern along with the script trying to give breakout from its Classical ascending triangle Chart Pattern formation. Indicators are also conforming to the bullish bias in the script. So, we recommend buying in the script with a Target of 550 and our view will negated only below price sustain below 495 levels," said Kkunal Parar, Vice President · Choice Equity Broking Private Limited.

On Friday, the shares of Banco Products closed on the BSE at Rs 514.90 apiece up by 0.84% from the previous close of Rs 510.60. The stock made a 52-week-high of Rs 540.80 on (23/08/2023) and a 52-week-low of Rs 176.55 on (30/09/2022). In the last 1 year the stock has given a multibagger return of 102.36% and on a YTD basis it has given a multibagger return of 156.55% so far in 2023.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.