22% Dividend Payout Soon: Auto Stock Hits New 52-Week High, Rises Over 100% YTD Ahead of Ex-Dividend

Hindustan Hardy, an auto stock, has touched a new 1-year ahead of turning ex-dividend on Tuesday. The company is set to reward 22% dividends to its shareholders for FY23. The ex-dividend date is the day when the price of the equity share of the listed company gets adjusted for the dividend payout. The year 2023 so far has been filled with robust gains for Hindustan Hardy investors as the stock emerges as a multi-bagger with over 100% upside.

Dividends are distributed also in a certain proportion by listed companies from their net profits earned in a respective financial year. The record date is proposed by the listed company's board of directors to determine the name of the eligible shareholders for dividends. As per BSE FAQs, to be eligible to receive dividends, investors have to have shares in the Demat account by record date.

As per the regulatory filing, the company's board of directors has recommended a dividend of Rs 2.20 per share (22%) on the equity shares of the Company for the financial year 2022-2023. This final dividend payout is to the tune of Rs 32.97 lakh for the fiscal. Notably, the proposed dividend on equity shares is subject to approval at the Annual General Meeting and hence not recognised as a liability.

Furthermore, the company notified that the dividend, if approved by the Members of the Company at the AGM, will be paid on and from Wednesday, September 20, 2023, onwards.

The company's annual general meeting (AGM) is scheduled for Friday, September 15, 2023. Hence, the company's book closure will begin from September 13th to 15th owing to the purpose of AGM and declaration of dividend if any.

Hence, the stock will turn ex-dividend on September 12 ahead of the book closure.

Ahead of the ex-dividend date, the stock settled at Rs 479.50 apiece, up by Rs 8 or 1.70% on BSE. The stock also touched a new 52-week high of Rs 493 apiece on the exchange during Monday's trade.

Year-to-date, Hindustan Hardy shares have rallied by 107% on the BSE. The stock was below Rs 235 levels at the start of January this year but has made tremendous upside in less than 9 months by hitting a new 52-week high of Rs 493 apiece. The stock also surged by a whopping 130.3% from its 52-week low of Rs 214.10 apiece as of now.

For over five decades, the company has been manufacturing driveline components of the highest quality. Its products are designed and built for maximum durability and superior performance. Over the years, the company has built on technology from its global partners and developed a product offering that caters to the requirements of both Indian and overseas markets.

In the June 2023 quarter, the company posted revenue from operations of Rs 16.4 crore versus Rs 14.02 crore in the same quarter a year ago. Net profit after tax stood at Rs 1.61 crore as against Rs 43.06 lakh in Q1FY22.

During the fiscal FY22, the company paid a dividend of Rs 2 per share aggregating to Rs 29.97 lakh to its shareholders. As per Trendlyne data, the company has declared approximately 21 dividends since August 2001.

At the current market price, the company's dividend yield is at 0.42%.

At Trendlyne, the stock is referred to as 'Strong Performer, Getting Expensive (DVM). This classification means that stocks are with high durability and momentum scores, and a valuation less than or equal to 50. These stocks are considered strong performers whose valuation is getting expensive.

That being said, the RSI and MFI of the stock are strongly overbought at 72.3 and 83.7 respectively. However, 1-year Beta comes around -0.07%, which indicates very low volatility in the stock.

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