Large Cap Stock To Pay 200% Dividend Soon, Scrip Up 300% In 3 Years

During Friday's closing session, Polycab India, a large cap firm, had a market cap of Rs 52,557.94 Cr. One of the top producers of cables, wires, and related products such uPVC conduits, lugs, and glands in India is Polycab. Under the "POLYCAB" brand, Polycab is in the business of producing and marketing wires, cables, and fast-moving electrical goods (FMEG). In addition to producing and selling wires and cables, it also manufactures and markets FMEG items such electric fans, LED luminaires, switches, and switchgear, as well as solar products, conduits, and accessories.

For the fiscal year 2022-2023, the Board of Directors has recommended a dividend at a rate of 200%, or Rs. 20 per equity share with a face value of Rs. 10 each, subject to shareholder approval at the upcoming Annual General Meeting.

In order to determine the eligibility of the shareholders for the purpose of dividend, the Board of Directors of Polycab India said in a stock exchange filing that "The Dividend of Rs 20/- per equity share of face value of Rs 10/- each, as recommended by the Board of Directors for the financial year 2022-23, if approved at the 27th Annual General Meeting, would be paid subject to deduction of tax at source, as may be applicable, after June 30, 2023, to those persons or their mandates: a) whose names appear as Beneficial Owners as at the end of the business hours on Wednesday, June 21, 2023 (Record date) in the list of Beneficial Owners to be furnished by National Securities Depository Limited and Central Depository Services (India) Limited in respect of the shares held in electronic form; and b) whose names appear as Members in the Register of Members of the Company as at the end of the business hours on Wednesday, June 21, 2023 after giving effect to valid request(s) received for transmission / transposition of shares."

"Further, pursuant to Section 91 and other applicable provisions, if any of the Companies Act 2013 and Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the register of members and share transfer books of the Company shall remain closed from Thursday, June 22, 2023 to Sunday, June 25, 2023 (both days inclusive) for the purpose of Dividend and AGM," said Polycab India in a statement.

The firm said that during Q4FY23, its consolidated revenue from operations grew by 9% YoY from Q4FY22's Rs 3969.98 Cr to Rs 4323.68 Cr. The firm said that its consolidated net profit was Rs 424.75 Cr, up 31% YoY from Rs 322.15 Cr in the same period last year. The company's revenue from operations for the entire financial year ended FY23 increased from Rs 12203.76 Cr in FY22 to Rs 14107.77 Cr. According to Polycab India, its net profit for FY23 was Rs 1269.95 Cr as opposed to Rs 836.52 Cr in FY22.

On Thursday, the shares of Polycab India closed on the NSE at Rs 3,510 apiece down by 0.79% from the previous close of Rs 3,538.05. The stock touched a 52-week-high of Rs 3,618.00 on (05-Jun-2023) and a 52-week-low of Rs 2,043.85 on (20-June-2022). The stock price climbed from Rs 643.55 to the current market price during the past five years, resulting in a multibagger return of 445.41%. The stock price soared from Rs. 741.65 to the current market price during the past three years, resulting in a multibagger return of 333.64%. The stock has gone up 51.29% over the past year, and YTD, it has appreciated 36.05% so far in 2023. During Q4FY23, Polycab India recorded promoters shareholding of 66.21%, FIIs stake of 9.78%, DIIs stake of 9.34% and public stake of 14.67%.