High Dividend Stock: Pharma Firm That Will Pay 1500% Dividend In September, Earns Q1 Profit Of Rs 356 Crore

Divi's Laboratories earned a net profit of Rs 356 crore on a consolidated basis in the quarter ending June 30, 2023, compared to a profit of Rs 702 crore a year ago same period. This pharma company is among high dividend-paying stocks, and it is already scheduled to reward its shareholders with a whopping 1,500% dividend payout in September month.

Sequentially, the profit rose from Rs 321 crore reported in the March quarter.

As per the regulatory filing, consolidated total income stood at Rs 1859 crore for the 1st quarter of the year 2023-24 on a consolidated basis as against an income of Rs 2343 crore for the corresponding quarter of last year.

Divi's Lab said that forex gain for the current quarter amounted to Rs 3 crore as against a gain of Rs 56 crore during the corresponding quarter of the last year.

On a standalone basis, the company's PAT and revenue were at Rs 345 crore and Rs 1,810 crore respectively.

Earnings per share of the company is Rs 13.41 on a diluted basis.

Divi's Lab has declared a dividend of Rs 30 per share (i.e. 1,500%) per equity share of face value ₹ 2/- each for the financial year 2022-23, subject to the approval of the members at the ensuing 33rd Annual General Meeting (AGM).

The stock has already turned ex-dividend on August 11, 2023, which was also the record date. This means that those investors who have held Divi's Lab shares in their demat account by the end of business hours on August 11, 2023, will be eligible to receive the dividend payout.

For the full year FY23, the company earned a consolidated total income of Rs 8112 crore, while PAT was at Rs 1823 crore.

The company is scheduled to meet on August 28, 2023, for the 33rd Annual General Meeting and the standalone and consolidated financial statements for the financial year 2023.

It said, "If the dividend, as recommended by the Board of Directors, is approved at the AGM, payment of such dividend subject to deduction of tax at source will be made on and from Monday, September 04, 2023."

On Monday, Divi's Lab shares ended at Rs 3731.35 apiece up by Rs 55.05 or 1.50% on BSE. At the current market price, the company's market cap is Rs 99,055.62 crore.

The stock is up by 37% from its 52-week low of Rs 2,730 apiece currently on BSE. In six months the stock has gained by over 32%. However, year-to-date, the upside is nearly 11%. But Divi's Lab is a multi-bagger with its 5-year performance rising by more than 218% on the exchange.

Divi's Lab has consistently paid rewarded its shareholders with dividends. In FY22, the company paid Rs 30 per share or 1500% dividend, while the payout was Rs 20 dividend per share or 1000%.

At the current market price, Divi's Lab's dividend yield is 0.8%.

Divi's has been established for more than 30 years in Hyderabad, India with two manufacturing units and is among the top pharmaceutical companies in India. It is the leading manufacturer of APIs(Active pharmaceuticals ingredients), Intermediates and Registered starting materials offering high-quality products with the highest level of compliance and integrity to over 100+ countries.