7.81% Dividend Yield: Rs. 17/Share Dividend Declared; Bet On The Debt-Free Stock?

As of Tuesday's closing session, Stovec Industries, a small cap capital goods company, has a market valuation of Rs 545.11 Cr. Founded in 1973, Stovec Industries Limited is a subsidiary of SPGPrints B.V., located in the Netherlands. As a comprehensive supplier of printing solutions, Stovec provides a product portfolio that comprises a variety of capital and consumable items for the textile printing industry. Stovec is a manufacturer of electroformed materials for the packaging and graphic printing industries in the non-textile category. The stock has produced a 7.81% dividend yield over the past 12 months, and the company has announced a 170% final dividend for FY24.

Stovec Industries Dividend

The Board of Directors "recommended final dividend of Rs. 17 per equity share of Rs. 10/-each (i.e. 170%) for the financial year ended December 31, 2023, and the same will be paid to the eligible members on or before its due date, subject to the approval of shareholders at the ensuing Annual General Meeting ("AGM")," said the company in a regulatory filing.

Since July 9, 2001, Stovec Industries Ltd. has issued 25 dividends, according to data from Trendlyne. Stovec Industries Ltd. announced an equity dividend of Rs 204.00 per share in the last 12 months. Hence the dividend yield for Stovec Industries Ltd. is 7.81% at the current share price of Rs 2610.65.

A 1570.00% equity dividend, or Rs 157 per share, has been issued by Stovec Industries for the quarter ending in December 2023. For the past five years, the firm has regularly distributed dividends and has a strong dividend track record being a debt-free company.

Stovec Industries Financials

The company reported a net sales of Rs 57.97 crore in the December 2023 quarter down 4.85% from Rs. 60.93 crore in the December 2022 quarter. Its net profit stood at Rs. 4.01 crore in Q3FY24 up 140.75% from Rs. 1.66 crore in Q3FY23. EBITDA reached Rs. 6.77 crore in the reporting quarter up 54.21% from Rs. 4.39 crore in the same quarter of FY23.

Stovec Industries Share Price Target

Stovec Industries is overbought & bearish on the Daily charts with strong resistance at 3037. A daily close below support of 2800 could lead to a target of 2507 in the near term, said AR Ramachandran from Tips2trades.

Disclaimer

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