1750% Dividends In FY23: 77-Year Old Tyres Manufacturer To Declare Interim Dividend, Sets Record Date

MRF previously known as Madras Rubber Factory, is India's largest tyre manufacturer. The stock which is currently worth over Rs 1 lakh per share is among the high dividend-paying stocks. In FY23 alone, the company paid a whopping 1750% dividends. And once again, MRF is back to reward its shareholders with an interim dividend for FY24.

As per the regulatory filing, the meeting of the Board of Directors of our Company will be held on Friday, 3rd November,2023 inter alia to transact the following business:

- To consider and approve the Standalone and Consolidated Unaudited Financial Results of the Company for the quarter and half year ended 30th September 2023.

- To consider declaration of Interim Dividend."

MRF has fixed November 17 as the record date to determine eligible shareholders for the dividend payout.

Last week, on BSE, MRF shares ended at Rs 1,09,486.25 apiece on Friday, marginally down from the previous closing. The stock's 52-week high is at Rs 113,379.10 apiece, while the 52-week low is at Rs 81,390.95 apiece. Its 10% upper and lower circuits are at Rs 1,20,434.85 per share and Rs 98,537.65 per share respectively.

Year-to-date, MRF shares have zoomed by over 24% on BSE. Its all-time high performance is mind-boggling 4,223.22% returns since early-1996s to as of now.

Have you ever wondered why MRF shares are so expensive? According to Angel One's website, the reason behind its expensive share price is primarily due to the limited number of shares available in the market. Additionally, MRF has never undergone a share split to decrease the share price. The equity capital of the company is Rs 4.24 Crore and it is still the same. MRF shares hold the distinction of having the highest denomination among all the companies listed in India.

In FY23, MRF paid a total dividend of 1750% amounting to Rs 175 per share. As per Angel One, the dividend yield is 0.15% if we calculate the dividend amount in value terms with the share price of Rs 1 Lakh then it would be Rs 150 only. Its ROCE and ROE are 7.94% and 5.35%.

Since August 2000, this tyre giant has declared a massive 71 dividends, as per Trendlyne data.

MRF Tyres is an Indian multinational and India's largest tyre maker, headquartered in Chennai, India. The company was founded in 1949 by K M Mammen Mappillai. The company's product ranges from rubber products including tyres, treads, tubes and conveyor belts, paints and toys.

During June 2023 quarter, MRF reported a consolidated net profit of Rs 588.75 crore, a growth of 376.3% as against profits of Rs 123.60 crore in the same quarter a year ago. Revenue from operations were at Rs 6,440.29 crore, also up by 13.06% compared to Rs 5,695.93 crore in Q1FY23.

The company's market cap is currently around Rs 46,435 crore at the current market price.