200% Payout: Just At Rs 3, This Penny Stock Recommends Rs 20/Share Dividend For Investors; Hits New High

Iron and steel products maker, Taparia Tools traded on a bullish note on Tuesday after healthy Q3 earnings for FY24. But that was not all, Taparia also declared an interim dividend to the tune of 200% which had the investors excited. Taparia shares froze at their new 52-week high.

Taparia Tools Share Price:

This steel stock froze at its new 52-week high of Rs 3.06 apiece, up by 4.8% with a market cap of Rs 4.64 crore. That means there were several buyers in Taparia shares but no sellers on Tuesday.

Taparia shares are currently up by 46% from its 52-week low of Rs 2.10 apiece.

Taparia Tools Interim Dividend:

The company declared an interim dividend of Rs 20 per share having a face value of Rs 10 each for FY24. In percentage terms, the dividend payout will be 200%. The dividends will be from the distributable profits for the period April to December 2023.

For determining eligible shareholders for the interim dividend payout, the company has fixed February 24 as the "Record Date".

Hence, February 24 is also the ex-dividend date.

Dividends are generally distributed in a certain proportion by listed companies from their net profits earned in a respective financial year. Dividends are among many rewards that are paid for holding equity shares. Other incentives are bonus issues and also stock split benefits.

Furthermore, as per BSE FAQs, to be eligible to receive dividends, investors have to have shares in the Demat account by record date. Meanwhile, the ex-dividend date is the day when the price of the equity share of the listed company gets adjusted for the dividend payout.

Taparia Tools Q3 Results:

The company posted revenue from operations of Rs 208.58 crore in Q3FY24, rising from Rs 193.31 crore in Q3FY23 and Rs 209.06 crore in Q2FY24.

Meanwhile, PAT stood at Rs 28.21 crore in Q3FY24, compared to Rs 19.29 crore in Q3FY23 and Rs 23.64 crore in Q2FY24.

From April to December of FY24, the company's net profit was at Rs 70.85 crore versus Rs 54.48 crore in the same period a year ago. Revenue stood at Rs 609.01 crore in 9MFY24 as against Rs 569.60 crore in 9MFY23.

About Taparia Tools:

TAPARIA TOOLS started manufacturing hand tools in 1969 in India in technical collaboration with a reputed company in Sweden.

Taparia Tools has been since then consistently producing all the hand tools in India with the exact technology of its collaborators. Taparia's range is quite wide and is continually expanding. The quality, the features, the looks, the packings etc., of tools is continually improved. All these Hand tools are manufactured in our two modern factories, which have full manufacturing facilities at Nashik and Goa. Nashik is situated around 190 km from Mumbai and Goa is around 600 km from Mumbai.

The Company's manufacturing facilities includes modern Forge shop, Machine shop, Heat treatment, Polishing, Nickel chrome plating and so on.

Disclaimer: The stock highlights dividend and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.