This Small Cap Pharma Co. Recommends Rs. 11.5/ Share Final Dividend: Check Details

Updated: Tuesday, August 30, 2022, 10:07 [IST]

While the earnings season for India Inc. has almost concluded, a small cap healthcare company P&G Health announced its earnings results on August 29, 2022. Alongside the company also recommended the final dividend for the financial year ended June 30, 2022. Here are the important details for investors know-how:

Dividend recommended

The company's board on August 29, 2022 recommended dividend to the tune of Rs. 11.5 per share. The stock exchange filing by the company on the same read, "to further inform you that the Board of Directors of the Company at its meeting held today, inter alia, have recommended a final dividend of Rs.11.50 per equity share, for the financial year ended June 30, 2022. The dividend shall be paid between November 28, 2022 to December 18, 2022, on approval of the Members at the 55th Annual General Meeting".

While the record date for the said dividend is still to be announced, the company has clarified on the dividend payment date which shall be between November 28-December 18, 2022.

Dividend yield for Fy22 becomes 1.25% at the current market price

For the year ending June 2022, the dividend yield shall go up to 1.25%, taking into account interim dividend of Rs. 41 and final dividend of Rs. 11.5 and computing that against the current share price of the scrip of Rs.4187.7. For the previous year, the yield was higher at over 3% with dividend of 1300%.

P&G Health's June ended results

P&G Health's Q4FY22 (July-June fiscal year) revenue increased 4% YoY to Rs. 296 crore while domestic formulations was up 8% YoY. EBITDA margins improved 323 bps to 20.2% while EBITDA grew 23% YoY to Rs. 60 crore. Subsequently, PAT expanded 21% YoY to Rs.41 crore.

Brokerage's view on the scrip

Brokerage firm ICICI Direct is neutral on the stock and mentions in its report that "Despite high inflationary pressures, P&G Health sales grew 10.5% to | 1114 crore in FY22 with EBITDA margins at 24.1%. P&G Health's Q4 revenues were in line with our expectations even when operations in Sri Lanka was impacted due to challenging environment. EBITDA margins came in lower mainly due to higher other expenditure amid normalisation in marketing and promotional activities. On growth front, the company's core therapy -VMS (65% of topline) has been muted YoY due to higher base. P&G Health possess MNC pharma traits like strong brand stickiness, growth, earnings visibility, strong b/s, etc. The key differentiator for P&G Health is that its core category is VMS and amid increasing demand for daily supplementation, the company is focused on executing its strategy of offering superior brands, driving productivity, increasing reach, and improving awareness.

About P&G Health

Procter & Gamble Health Limited is one of India's largest VMS companies manufacturing and marketing vitamins, minerals, and supplements products for a healthy lifestyle and improved quality of life, including Neurobion, Livogen, SevenSeas, Evion, Polybion and Nasivion.