Ashish Kacholia Portfolio Multibagger Stock To Consider Bonus Shares & Dividend: Do You Own?

During Monday's closing session, Safari Industries (India), a mid-cap consumer discretionary firm, registered a market cap of Rs 9,874.57 Cr. One of the stocks that routinely has produced multibagger returns over the past five years is Safari Industries. Despite being a multibagger stock, investors should be aware that the company's Board of Directors may shortly consider offering bonus shares and a dividend.

Safari Industries said in a stock exchange filing that "we wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Wednesday, 1st November 2023 inter alia to consider and approve amongst other matters:

1. The Un-audited Standalone and Consolidated Financial Results of the Company for the quarter and half year ended 30th September 2023;

2. Declaration of Interim Dividend on equity shares for financial year 2023-24, if any.

3. Proposal for issuance of Bonus Shares to the equity shareholders of the Company, if any, subject to such approvals as may be required including the approval of the Board, Members at a general meeting or through postal ballot and further subject to such other statutory/regulatory approvals, as applicable.

4. Raising of funds which may include issue of equity shares and/or GDRs and/or ADRs and/or FCCBs, composite issue of non-convertible debentures and warrants entitling the warrant holder(s) to apply for equity shares, convertible securities or any other instrument or security including fully/partly convertible debentures through domestic and/or international offerings representing either equity shares or a combination of the foregoing in the course of domestic and/or international offerings through public issue and/or private placement and/or rights issue and/or preferential allotment and/or qualified institutions placement, subject to such approvals as may be required including the approval of the Board, Members at a general meeting or through postal ballot and further subject to such other statutory/regulatory approvals, as applicable."

Safari Industries (India) has announced an equity dividend of 175.00% at a face value of Rs 2, or Rs 3.5 per share, for the financial year ended March 2023. This generates a dividend yield of 0.08% at the current share price of Rs 4152.10. The company has a solid track record of dividend declarations during the past five years. Safari Industries (India) Ltd. has issued 12 dividends since September 5, 2002, according to Trendlyne statistics.

In the June quarter of FY24, Safari Industries Ltd. recorded a consolidated net profit of Rs. 49.94 crore, up 88% from Rs. 26.59 crore in the same quarter of the previous financial year. In Q1FY24, the company's total revenue was Rs 426.68 crore, up 46% from Rs 293.04 crore in Q1FY23. EBITDA (earnings before interest, tax, depreciation, and amortisation) was Rs 79 crore for Q1FY24, up 88 per cent from Rs 42 crore in the same period last year. The EBITDA margin jumped from 14.2 per cent in the same quarter of the prior fiscal to 18.5 per cent in the June 2023 quarter.

On Monday, the shares of Safari Industries closed on the BSE at Rs 4152.10 apiece. The consumer discretionary stock made a 52-week-high of Rs 4,535.00 on (11/10/2023) and a 52-week-low of Rs 1,576.45 on (26/12/2022). In the past year, the stock has produced a multibagger return of 136.02%, and YTD, the scrip has gone up by 146.73%.

During Q2FY24, the promoters' shareholding of Safari Industries was 46.96%, FIIs stake was 12.95%, DIIs stake was 17.51% and public stake was 22.59%. During the July to September 2023 quarter, ace investor Ashish Kacholia held 5,00,000 shares in his portfolio or a 2.10% fully paid-up equity stake in the company.