200% Dividends In FY23: This Bajaj Stock Soars 9% In 1 Day After Winning Rs 564 Crore Worth Deal

Among many dividend-paying stocks under the ambit of Bajaj Group would also be Bajaj Electricals. This consumer durable stock witnessed a huge rally on Monday despite the broader market sentiment being mostly muted. Bajaj Electricals skyrocketed nearly 9% during the trading session. The reason behind the optimism can be attributed to a huge deal win from a leading government-backed power company.

On BSE, Bajaj Electricals touched a new 52-week high of Rs 1086 apiece, up by at least 8.93% during the latest trading hours.

After market hours, the stock ended at Rs 1086 apiece, up by Rs 13.80 or 1.3% on BSE. Its market cap is over Rs 12,500 crore.

This would also be Bajaj Electrical's fifth consecutive rally. The stock has been in green since October 10th. But a massive rally was recorded on October 16th, taking its performance up by 10% in these five days.

As per the regulatory filing on October 13, Bajaj Electricals informed exchanges that it won a service contract by
Power Grid Corporation of India Limited. The contract is to the tune of Rs 564.20 crore.

The contract involves two transmission line packages. Firstly, the 400kV New Transmission Line -83.12km associated with the Transmission scheme for Solar Energy Zone in Ananthpuram (Ananthapur) (2500 MW) and Kurnool (1000 MW), Andhra Pradesh under the TBCB route. Secondly, would be the 400kV New Transmission Line -
183km also in the same region.

Bajaj Electricals said, "The above projects shall be completed within 21 months from the date of
issue of their respective NOA/LOA. "

Bajaj Electricals is a part of India's leading business conglomerate the Bajaj Group. Its business portfolio spans Consumer Products (Appliances, Fans, Cookware), Lighting (Consumer and Professional Lighting), and EPC (Power Transmission and Distribution). Bajaj Electricals is a front-runner in the industry with its key brand offerings comprising BAJAJ, Morphy Richards, and Nirlep.

The company has an expansive network of 18 branch offices, 600+ distributors, and more than 2.3 lakh retail outlets across India, combined with over 500 consumer care centres, fortifying its dominant presence in the consumer products sector.

In FY23, Bajaj Electricals paid a dividend of 200% amounting to Rs 4 per share. On the current market price, it has a dividend yield of Rs 4 per share.