Multibagger Midcap Company's Profit Gains 54%, Declares 290% Dividend: Buy?

Amara Raja Batteries Limited (ARBL), a market leader in producing lead-acid batteries, announced an interim dividend of 290% for FY23, after declaring its Q2 results. November 16, 2022 has been fixed as the record date for the dividend.

Amara Raja Batteries informed the stock exchanges "Pursuant to Regulation 30, 42 and 43 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors had declared an interim dividend of Rs. 2.90/- per equity share (representing 290%) of Rs.1/- each fully paid up for the financial year 2022-23 and the said interim dividend will be paid on or before December 2, 2022. Pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015, the Board of Directors had fixed Wednesday, November 16, 2022 as the "Record Date" for the purpose of payment of Interim Dividend for the Financial Year 2022-23. Accordingly, members whose name appear as on close of business hours as on November 16, 2022 (a) as beneficial owners as per the details furnished by the Depositories in respect of shares held in electronic form and (b) as members in the Register of Members would be entitled for the said interim dividend pay-out."

Earnings report

The company's standalone net revenue from operations stood at Rs. 2.699.46 crore in Q2FY23, grew by 19.22% YoY and 3.03% QoQ, compared to Rs. 2.264.19 crore in Q2FY22. Its net profit stood at Rs. 202.17 crore in Q2 FY23, gained by 40.27% YoY, and 53.79% QoQ, compared to Rs. 131.45 crore recorded in Q1 FY23. On the other hand, the EPS increased to Rs. 11.84 as of Q2FY23 from Rs. 7.70 as of Q1FY23 and Rs. 8.44 as of Q2FY22.

Stock performance

In the last 1 month its share price gained by 13.75%, the past 6 months its share price gained by 4.82%, and in the last 1 year its share price has fallen by 18.93%. The 52-week high level of this stock is Rs. 714, and the 52-week low level of this stock is Rs. 438.05. This mid-cap company has a market capitalization of Rs. 9,726 crore.

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