1:1 Bonus Issue, Rs 3.30/Sh Dividend Soon: Paint Stock Below Rs 300 To Pay Double Rewards, Hits New 1-Yr High

Amidst long queues of stocks offering bonus shares and stock splits on BSE and NSE, there is one penny stock only listed on NSE with business related to the paint sector, which has announced double rewards. This would be Siddhika Coatings who is going to pay a hefty dividend of Rs 3.30 per share and free bonus shares in the ratio of 1:1. The double rewards are being paid after the company's healthy Q4 results. On May 22, the stock also rallied to hit a new 52-week high.

Siddhika Coatings Share Price: {image-bonus600-1716410652.jpg www.goodreturns.in

On May 22, on NSE, the stock price surged to hit a new 52-week high of Rs 296.55 apiece. After market hours, the stock ended at Rs 293 apiece, down by 3.74% with a market cap of Rs 90.52 crore.

The stock's 52-week low is at Rs 171.20 apiece, while it's 5% upper circuit and the lower circuit are at Rs 296.55 and Rs 268.35 respectively.

From its 1-year low, the stock is up by 71%.

Siddhika Coatings Dividend:

The company's board has recommended a final dividend of Rs 3.30 per Share of Rs 10/- each for the Financial Year 2023-24 subject to the approval of shareholders in the ensuing Annual General Meeting.

Siddhika Coatings Bonus Issue:

Also, the company's board has announced a Bonus Issue of Equity Shares in the proportion of (One) Equity Share of Rs 1/- each for every (One) Equity Share of Rs 1/- each held by the shareholders of the Company as on the record date fixed by the company.

Siddhika Coatings Share Capital:

Meanwhile, the board also approved to increase the Authorised Share Capital of the Company from existing Rs. 3,25,00,000/- (Rupees Three Crore Twenty-Five Lakhs Only) divided into 32,50,000 (Thirty-Two Lakhs Fifty Thousand) Equity Shares of Rs. 10/- (Rupees Ten) each to Rs. 11,00,00,000/- (Rupees Eleven Crore only) divided into 1,10,00,000 (One Crore Ten Lakh) Equity Shares of Rs.10/- (Rupees Ten) each by creating Rs. 7,75,00,000 divided into 77,50,000 (Seventy Seven Lakhs Fifty Thousand) Equity Shares of Rs. 10/- each ranking pari passu in all respect with the existing Equity Shares of the Company and consequent Alteration of the capital clause of the Memorandum of Association of the Company, subject to the approval of shareholders in the ensuing Annual General Meeting.

Siddhika Coatings Earnings:

In Q4FY24, the company posted a consolidated net profit of Rs 2.71 crore, versus Rs 2.24 crore in Q4FY23 and Rs 2.31 crore in Q3FY24. While revenue from operations stood at Rs 22.11 crore from Rs 19.41 crore in Q4FY23 and Rs 16.98 crore in Q3FY24. Its earnings per share rose to Rs 8.80.

FY24 net profit was at Rs 5.03 crore compared to Rs 3.77 crore in FY23. Also, FY24 revenue came in at Rs 39.9 crore as against Rs 34.07 crore in FY23.

Siddhika Coatings is India's largest texture paint contract company in the single brand segment. Siddhika is a marketing & application partner for SK Kaken Ltd. Japan, has its headquarters based in New Delhi and more than 10 branches all over India including Mumbai, Bengaluru, Hyderabad, Kolkata & Chennai.