50-90% Dividends Payout: 2 Top Railway Stocks BEML, IRCON To Turn Ex-Dividend This Week; Key Details Here

Two leading railway stocks holding the status of Miniratna and Navratna will be in focus during the trading week from February 12th to 16th as they will be turning ex-dividend for their upcoming payout of 50-90%. These two stocks are multibaggers namely BEML and IRCON International. However, last week, following the bandwagon of bears, the two stocks also ended their weekly performance in red.

It will be keenly watched how these two stocks perform in the trading week leading up to ex-dividend. Both the companies have registered healthy gains in Q3FY24.

BEML Dividend:

This Miniratna railway stock has declared an interim dividend of Rs 5 per share having a face value of Rs 10 each for the financial year 2023-24. In percentage terms, the dividend payout is 50% of paid-up share capital. The company fixed February 16 as the record date for payment of said interim dividend to the eligible equity shareholders.

Hence, BEML shares will also turn ex-dividend on February 16.

In Q3FY24, BEML reported a jump of 1% in its revenue for the third quarter of 2024 from Rs 1036 crore to Rs 1047 crore, whereas its year-on-year (YoY) revenue reported a rise from Rs 2510 cr to Rs 2541 cr, registering a growth of 1%.

Also, in the quarter, the employee cost for the company has dropped by 2% YoY basis, on consistent efforts towards reducing manpower costs. The EBITDA margins for a nine-month period have improved by 34% from Rs 83 crore to Rs 110 crore in the current year over the previous year nine monthly period. The revenue from operations has improved due to Rail & Metro business vertical execution of MEMU orders to Indian Railways RGM to LORAM and Mumbai Metro contracts.

Event the PAT for nine months up to December 2023 has improved from 0.56 crore to Rs 26 crore, whereas the PAT margin has improved from 0.02% to 1.02%. The reducing manpower strength from 5248 in December 2022 to 4948 after a year same period resulted in lessening manpower cost.

BEML operates in three verticals viz. Defence & Aerospace, Mining & Construction and Rail & Metro and has state-of-the-art manufacturing facilities located at Bangalore, Kolar Gold Fields (KGF), Mysore, Palakkad. BEML has a very strong R&D infrastructure. BEML also has a nationwide network of sales and services.

Last week, on Friday, BEML's share price ended at Rs 3,248.20 apiece, down by 7.62% on BSE with a market cap of Rs 13,526.97 crore.

IRCON International Dividend:

IRCON which recently received its Navratna status is also going to turn ex-dividend on February 16 for its interim dividend of Rs.1.80 per equity share on the face value of Rs.2/- each (90% of the paid-up equity share capital) for the financial year 2023-24. The company plans to pay the dividends from, Tuesday, 27th February 2024 onwards.

February 16 is also the record date for IRCON to identify eligible shareholders for the interim dividend.

On BSE, IRCON share price ended at Rs 222.40 apiece, down by 2.73% on February 9. It has a market cap of Rs 20,917.07 crore.

In Q3FY24, IRCON's revenue from operations increased by 22.9% to Rs.2,884.2 crore as against Rs.2,346.5 crore in Q3FY23. EBITDA was at Rs.378.1 crore, an increase of 63.2%, as compared to Rs.231.7 crore in
Q3FY23. The Company's EBITDA margin stood at 12.6%. Meanwhile, Profit After Tax increased by 28.8% to Rs.244.7 crore in Q3FY24 as against Rs.190 crore in Q3FY23.

As of December 31, 2023, IRCON's total order book stood at Rs 29,436.1 crore. Of the total, the largest order book is in the railways segment to the tune of Rs 21,282.0 crore, while orders in highways and other segments stood at Rs 6,102.2 crore, and Rs 2,051.9 crore respectively.

The core competence of IRCON is in Railways and Highways & the company reports to the Ministry of Railways. The company has executed projects operated in the
areas of Railway construction including ballastless track, electrification, tunnelling, signal & telecommunication as well as leasing of locos, construction of roads, highways, commercial, industrial & residential buildings and complexes, airport runways and hangars, metro and mass
rapid transit system, etc. The company has completed more than 128 projects in 25 countries across the globe and 401 projects in various states in India.

Disclaimer: The write-up just highlights the stock's dividends and performances and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.