Dividend King Stock: Largecap Firm Turns Ex-Dividend For 750% Dividend Payout In September

Dividend King Stock: Leading apparel manufacturer, Page Industries will be in focus on Friday as the stock will turn ex-dividend for its interim dividend to the tune of 750% for FY24, whose payout is likely to happen in September. Page Industries is among dividend king stocks and has a good track record of consistently rewarding shareholders with dividend benefits. In the financial year, the company paid a huge dividend of 2500% aggregating to Rs 250 per share. Currently, the stock has a dividend yield of 0.61%.

On August 10, the company declared a first interim dividend of Rs 75 per share (750%) from the profits of Q1FY24. It said, "The record date fixed for the payment of the interim dividend is 19 August 2023. The date fixed for payment of the dividend is on or before 7 September 2023."

But since August 19 is the weekend and markets will be closed. Hence, the stock will turn ex-dividend on August 18.

Those shareholders who hold Page Industries shares in their demat accounts by the end of August 18 will be eligible for the 750% dividend payout.

In the June 2023 quarter, the company posted a net profit of Rs 158.3 crore, up by 102 % QoQ and down 23.6% YoY. While revenue stood at Rs 1,240 crore, up 28 % QoQ and down 7.5% YoY. EBITDA was at Rs 241.8 crore, margins at 19.5 %, up 79.7% QoQ and down 18.8% YoY.

In its earnings report, Page Industries said, India's projected economic growth in FY24 will have a significant positive impact on the country's apparel and retail industry, which is expected to grow on the back of the country's rising population, strong purchasing power, internet penetration, and evolving fashion trends. This trend is accompanied by the accelerated growth of the middle-income population, rapid urbanization, and the increased organization of retail and online sales. An integral factor contributing to this sustained growth is the increasing migration of economy brand consumers towards premium brands.

Page Industries is the exclusive licensee of JOCKEY International Inc. (USA) for the manufacture, distribution and marketing of the JOCKEY brand in India, Sri Lanka, Bangladesh, Nepal, Oman, Qatar, Maldives, Bhutan and UAE. Page Industries is also the exclusive licensee of Speedo International Ltd. for the manufacture, marketing and distribution of the Speedo brand in India.

Jockey is the flagship brand and a market leader in the premium innerwear and leisure wear category. The brand is distributed in over 2,849 cities & towns and available in 120,461+ Brand Outlets, over 1,332 Exclusive Brand Stores(EBS) with extensive presence in over 2,843 Large Format Stores, as also online. Speedo brand is available in over 962 stores and 36 EBOs, spread across 90+ cities.

Post the Q1 earnings, Axis Securities in its outlook on Page Industries said, "We like management's unwavering focus on expanding distribution through multiple channels (MBOs, EBOs, LFS) and smaller cities, and their consistent commitment to implementing ARS across the retail network despite short-term volume pressures. This will make PAGE more flexible and stronger than its competitors in the long run. However, short-term challenges such as a subdued demand environment and increased competitive intensity will keep volume growth and margin development in check."

In five trading sessions, Page Industries stock rallied by Rs 2,185.55 or 5.60% on BSE. Its monthly upside is by Rs 4,736.60 or 12.99%.

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