Small Cap Stock Recommended Rs. 8.25 Dividend, ICICI Direct Sees 20% Upside, Buy

Leading brokerage firm ICICI Direct assigned a "Buy" on Vesuvius India Ltd. (VIL) for a decent potential gain of up to 20% with a target price of Rs 1,935 apiece. The stock in its Board meeting held on 27th February 2023, recommended Rs 8.25/share dividend for FY23. VIL is a Capital Goods sector stock primarily engaged in the manufacturing and trading of refractory goods. With a market capitalisation of Rs 3,284.82 crore, it is a small-cap stock. Check below to know more:

Vesuvius India's stock performance and outlook

The stock of Vesuvius India is currently trading at Rs 1,616.50 apiece on NSE. Today, it opened at Rs 1,611 apiece, while the previous close was Rs 1,617.70 apiece. Its 52-week low is Rs 900 apiece and 52-week high is Rs 1,858 apiece, respectively.

The stock in the past 3 months has fallen 7.4, whereas, it has fallen 4.76% in the past 1 week. It has given 8.69% positive return in 6 months. In 1 year it gave 69.39% positive return, 40.54% positive return in 3 years and 18.91% positive return in 5 years, respectively.

 

Recommendation of Dividend & Record Date

According to the Board of Directors of Vesuvius India Ltd, "Recommended dividend for the Financial year ended on December 31, 2022 of Rs. 8.25/- (Rupees Eight and Twenty Five Paise Only) per equity share of Rs. 10/- each."

The Board of Directors also Fixed Record Date for the Dividend. According to the exchange filing, "Fixed, Wednesday, April 26, 2023, as the Record Date, for purpose of determining those members who will be entitled to receive dividend which shall be paid after the approval of the members at the ensuing Annual General Meeting."

Q4CY22 Results

According to the brokerage, VIL reported decent set of Q4CY22* numbers. Revenues came in at Rs 348.4 crore, grew by 34.5% YoY, aided by better demand in steel, cement. EBITDA in Q4CY22 came in at Rs 39.5 crore, grew by 96% YoY with margins at 11.3%. Gross margin contracted by 160bps to ~39.4% YoY. Consequently, PAT grew by 110.4% YoY to Rs 27.6 crore.

Buy Stock For A Target Price of Rs 1,935/share

ICICI Direct Said, "We expect decent earnings in the long term led by operational efficiency, product innovation, R&D and a strong steel capex pipeline. We remain long term positive and retain our BUY rating on the stock. We value VIL at Rs 1935 i.e. 26x on average CY23E & CY24E EPS."

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.