Rs 82/Share Dividend, Bonus Issue; SmallCap Stock Hits New 52-Week High, Turns Rs 1 Lakh To Rs 2 Crore Corpus

Core Investment company, Kama Holdings crossed over Rs 15,000 mark on Wednesday and even touched a new 52-week high ahead of turning ex-dividend for a whopping 820% dividend payout. The stock is also in focus ahead of its board meeting where it consider bonus equity shares and declare Q1 earnings on September 1. Kama Holdings is a multibagger and in the long term, the stock has turned Rs 1 lakh investment into a breathtaking Rs 2 crore corpus.

At the time of writing, Kama Holdings traded at Rs 14,800 apiece, up by Rs 413.20 or 2.9% on BSE. But the stock has rallied over 4.2% in a single day by hitting a new 52-week high of Rs 15,000.05 apiece.

The company's market cap is nearly Rs 9,487 crore.

The company has declared a dividend of 820% aggregating to Rs 82 per share on the paid-up equity share capital.

Last week, the company said, that dividends would be paid to members whose names appear on the Register of Members and the beneficial owners as per details received from National Securities Depository Limited and Central Depository Services (India) Limited, as on the Record Date i.e. Thursday, the 31st August 2023.

Hence, the stock will turn ex-dividend on August 31.

The date of payment of the interim equity dividend will be Thursday, September 21, 2023.

In another development, the company announced that the board of directors are scheduled to meet on September 1, 2023, to consider issuance of bonus shares subject to approval by the shareholders.

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. Meanwhile, the ex-dividend date is the day when the price of the equity share of the listed company gets adjusted for the dividend payout.

As per Trendlyne data, the company has declared a total of 20 dividends since July 2003. In the past 12 months, it has declared an equity dividend amounting to Rs 84.00 per share.

At the current market price, the company has a dividend yield of 0.57%.

Meanwhile, bonus shares are issued in a certain proportion only to the existing shareholders free of cost. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.

Kama Holdings is a smallcap stock and has given a robust return to its shareholdings, making many of them even crorepati if invested for nearly two decades.

In 5 trading sessions, the stock has gained by Rs 2,350.10 or 18.9% on BSE, while its monthly upside is by Rs 2,512.05 or 20.44%.

In 5 years span, the stock has emerged as multi-bagger, skyrocketing by Rs 9,762.65 or 193.81% as of now. Its all-time gains a mind-boggling by Rs 14,784.45 or 95,383.55% since mid-2002. The stock was near Rs 15 levels in July 2002.

Using the Axis Direct calculator, investors who invested Rs 1 lakh in Kama Holdings since April 2005, the stock has given a massive corpus of Rs 2.06 crore in 240 months. Hence, those investors become crorepati.

Incorporated in 2000, Kama Holdings was formerly known as SRF Polymers. It has emerged as a core investment company engaged in the business of holding long-term investments. The listed company SRF is a subsidiary of Kama Holdings.