Rs 92/Share Dividend: Small Cap Debt Free Stock To Trade Ex-Dividend Tomorrow

Swaraj Engines is a small cap company Capital Goods company that recorded a market cap of Rs 2,716.99 Cr during Wednesday's closing session. The company deals in diesel engines, diesel engine parts, and diesel engine spare parts. The company has recommended a whopping dividend of 920% for the financial year ended 31st March, 2023, and the stock is going to trade tomorrow on 7th July.

"The Board, while approving the annual accounts, has recommended an equity dividend of 920 % (Rs. 92 per share) for the financial year ended 31st March, 2023. The Register of Members and Share Transfer Books of the Company will remain closed from Saturday, 8th July, 2023 to Friday, 14th July, 2023 (both days inclusive) for the purpose of determining the Members eligible to receive the dividend, if declared by the shareholders at the ensuing Annual General Meeting ("AGM"). The dividend, if declared at the AGM, will be paid within a week from the conclusion of the AGM," said Swaraj Engines in a stock exchange filing.

As per the data available on the BSE, Swaraj Engines has fixed 7th July 2023 as the ex-dividend date, and due to the theT+1 settlement mechanism of the company, the record date is also falling on the same date.

The firm declared a profit of Rs 35 crore for the fourth quarter that ended on March 31, 2023 (Q4FY23), up 59.8 per cent year on year (YoY) from a profit of Rs 22 crore for the same period the previous year (Q4FY22). The company's revenue from operations jumped by 48.4% (YoY) to Rs 359.79 crore from Rs 242.35 crore in the same quarter of FY22. Additionally, the company's EBITDA grew by 54 per cent (YoY) to Rs 48.5 crore from Rs 31.4 crore in the March 2022 quarter. As opposed to 23,937 units only in Q4FY22, the company's engine sales jumped by 45.6% to 34,841 units in Q4FY23. The company's net expenses for the quarter were Rs 316.41 Cr, compared to Rs 215.46 Cr for the same period last year. Swaraj Engines is yet to declare its Q1FY24 results.

On Wednesday, the shares of Swaraj Engines opened on the BSE at Rs 2248.95 apiece and clocked a 52-week-high of Rs 2,258 during the morning deals. The stock ended at Rs 2236.90 with an upside gap of 0.34% from the previous close of Rs 2229.25. The stock made a 52-week-low of Rs 1,395.65 on (13/03/2023). During Q4FY23, the company reported promoter stake of 52.13%, FIIs stake of 1.75%, DIIs stake of 9.16% and public shareholding of 36.96%. As per the data of Trendlyne, Swaraj Engines Ltd is a debt-free company which has a price-to-earning (PE) ratio of 20.3, lower than its sector PE ratio of 44.2.

Swaraj Engines has announced an equity dividend of 920.00% at a face value of Rs 10, or Rs 92 per share, for the financial year ended March 2023. The dividend yield at the current share price of Rs. 2238.00 is 4.11%. The company has a solid track record of dividend declarations during the past five years. Since July 18, 2000, Swaraj Engines Ltd. has issued 31 dividends, according to Trendlyne statistics.