Rs 3/Share Final Dividend Ahead: Buy The Stock After Q4 PAT Zooms 233%?

One of the few manufacturing facilities in the world with facilities for centrifugal, static, shell moulding, and investment castings is Nitin Castings Limited. In addition to the current grades of heat, corrosion, and wear resistance alloys, the firm also manufactures manganese steel, low alloy steel, chromium steel, and other materials. The firm serves key engineering sectors in India and outside, including Cement, Steel, Power, Oil & Gas, and others.

Nitin Castings Dividend

The Board of Directors declared a final dividend of Rs 3 per share of face value of Rs 5 each for FY24 subject to the approval of shareholders at the ensuing AGM, as per a regulatory filing.

Since August 2, 2016, Nitin Castings Ltd. has distributed seven dividends, according to Trendlyne statistics. Nitin Castings Ltd. announced an equity dividend of Rs 0.75 per share in the last 1 year.

Nitin Castings Financials

In the March 2024 quarter, the company's net sales of Rs. 39.15 crore were recorded, a 30.93% growth over the year-ago quarter's Rs. 29.90 crore. In Q4FY24, the company's net profit was Rs. 2.31 crore, up 233.93% from Rs. 0.69 crore in Q4FY23. Its EBITDA jumped by 179.81% to Rs. 5.82 crore during the quarter under review from Rs. 2.08 crore during the same quarter last year.

Net profit for the entire year jumped to Rs 12.13 crore in the year that ended in March 2024, up from Rs 4.89 crore in the year that ended in March 2023, a 148.06% growth. Sales for FY24 jumped 11.52% to Rs 148.75 crore from Rs 133.38 crore in FY23.

Nitin Castings Share Price Target

"Nitin Castings Limited, a specialist in high-quality alloy and corrosion-resistant castings, appears poised for an upward trend. Serving critical sectors such as aerospace, automotive, and energy, the company is expected to break out of its current consolidation phase. Investors might consider buying this small-cap stock between Rs.620 and Rs.650 price range for a target price of Rs.730-Rs.1000. With a 1-year return of 25.31%, a dividend of 0.54%, and a PE ratio of 27.96, which is significantly below the sector average of 1.08%, this stock offers a promising growth trajectory. However, I recommend setting a stop-loss at Rs.540 to protect investments over a suggested holding period of 10 to 100 days," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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