Rs 16/Share Dividend: Midcap Stock Nears 52-Week Ahead Of 800% Dividend Payout; How To Be Eligible

Midcap stock, AIA Engineering will be in focus in the trading week from September 11 to 15 as it will turn ex-dividend for its 800% dividend payout to shareholders for the financial year 2022-23. In value terms, the company will pay nearly Rs 151 crore as dividends by next month. The ex-dividend date is the day when the price of the equity share of the listed company gets adjusted for the dividend payout.

AIA Engineering has recommended a dividend of Rs 16/- (800%) per Equity Share of the face value of Rs 2/- each amounting to Rs 150.91 crore for the Financial Year 2022-23.

As per the regulatory filing, the Dividend, if declared/approved by the Shareholders at the ensuing Annual General Meeting, will be paid to those Shareholders, whose names stand registered in the Register of Members as of 12 September 2023. In respect of shares held in dematerialised form, it will be paid to the members whose names are furnished by National Securities Depository Limited and Central Depository Services (India) Limited, as beneficial owners.

Hence, the stock will turn ex-dividend on September 12, 2023.

In the year FY22, the company paid a final dividend of Rs 9 per equity share aggregating to Rs 84.89 crore.

It needs to be noted that AIA Engineering follows the policy of dividends for every financial year as may be decided by the Board considering the financial performance of the company and other internal and external factors enumerated in the Company's dividend policy such as reinvestment of capital in business. Currently, the company's Dividend policy is to distribute 10-25% of its consolidated net profit as dividends.

For FY23, the company's total revenue witnessed healthy growth, reaching Rs 5,143.31 crore, compared to Rs 3,722.84 crore in the previous year. PAT experienced remarkable growth, reaching Rs 1,056.50 crore, compared to Rs 619.62 crore in the previous fiscal year.

In the latest annual report, Bhadresh K. Shah, Managing Director at AIA Engineering said, "We remain extremely bullish on the long-term growth prospects in the mining industry given the huge conversion opportunity available to us for converting the mines from the conventional Forged Products into our High Chrome Solutions. Our unwavering focus on core industries like Cement and Mining and our commitment to customer satisfaction positions us well for continued success."

He added, "We remain committed to broadening our customer base and enhancing existing relationships. Our primary focus is on key markets such as North America, LATAM, Australia, and CIS, as well as critical countries like Chile, Peru, Brazil, and Canada. Market dynamics remain unchanged, and we forge ahead with an unwavering focus on gold, copper, and iron."

In the first quarter of FY24, AIA posted a total income from operations of Rs 1,239.59 crore versus Rs 1,079.70 crore in Q1 of the previous fiscal. PAT climbed to Rs 272.34 crore in Q1FY24 versus Rs 190.47 crore in Q1FY23.

On September 8, AIA Engineering shares ended at Rs 3722.15 apiece, up by 1.8% on BSE. The stock touched an intraday high of Rs 3741 apiece in the trading hours, which was almost near its 52-week high of Rs 3,744.90 apiece. Its market cap is around Rs 35,107.46 crore.

Year-to-date, AIA Engineering shares rallied by nearly 44% on BSE. While in 5 years, the stock becomes a multi-bagger with an upside of over 109%.

AIA Engineering specializes in the design, development, production, installation, and servicing of high chromium wear-resistant parts for grinding equipment in cement, mining and quarry industries.