Penny Stock Below Rs 5 Declares Huge Dividend of Rs 20/Share: Buy?

During Tuesday's trading session, Taparia Tools, a micro-cap company in the capital goods category, had a market valuation of Rs 4.64 Cr. The stock gained 4.79% to close at a new 52-week high of Rs 3.06. In 1969, Taparia Tools, an ISO-9001 recognised firm, began producing hand tools in India. Given that the penny company below Rs 5 has declared a massive dividend of Rs 20 per share, market observers are probably going to be paying close attention to this stock today.

Taparia Tools Dividend

"Pursuant to Regulation 30 and 43 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors of the Company has inter-alia considered to pay the Interim Dividend @ 200% (i.e. Rs. 20/- per share of Rs. 10/- each) from the Distributable Profits for the period from 01.04.2023 to 31.12.2023. Further pursuant to the provisions of Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors has fixed 24th February 2024 as "Record Date" to determine the list of eligible members for the payment of Interim Dividend and other matters," said Taparia Tools in a stock exchange filing on Tuesday.

Taparia Tools Financials

Taparia Tools' net profit climbed 46.24% to Rs 28.21 crore in the quarter that ended in December 2023 from Rs 19.29 crore in the quarter that ended in December 2022. Sales for Q3FY24 climbed 7.89% to Rs 208.58 crore from Rs 193.32 crore in Q3FY23.

Taparia Tools Share Price Target

Taparia Tools looks bullish on the Daily charts with strong support at 2.10. A daily close above resistance of 3.6 could lead to a target of 7 in the near term, said AR Ramachandran from Tips2trades.

Disclaimer

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