This Small Cap Multibagger Logistics Stock Turning Ex-Dividend On Monday-Should You Buy?

Dividend-paying stocks can generate a significant amount of income with little effort on your part. Not only do large-cap stocks pay out large dividends. Investing in small-cap stocks can also be a great way to generate dividends. Dividend-paying stocks are an excellent investment for almost any investor, not just those nearing or in retirement. Blue Dart, a small cap logistics company with multibagger returns is paying a 350% final dividend. The company has a rich history of dividend payouts for the last 21 years.

350% Final Dividend

The company has announced a final dividend of Rs 35 per share equal to 350% for the financial year 2021-22, as recommended by the board of directors on May 05. The company has fixed July 22 as the record date for determining eligible shareholders to receive the dividend.

Ex-Date & Record Date- The ex-date for the declared dividend is 21 July 2022, and the record date for the same announced by the company is 22 July 2022.

According to the Board of Directors in their regulatory filing to NSE & BSE on May 05, 2022, "Recommendation of Final Dividend of Rs 35/- (Rupee Thirty Five Only) per share on the Equity Capital for the Financial year ended March 31, 2022, subject to necessary approval by the members at the ensuing Annual General Meeting."

The company also, stated, "The Annual General Meeting of the Company shall be held on July 27, 2022."

Dividend History

The company maintains a good history of dividends. It has maintained a good track record of dividend payout since 2001. Since 2001, the company has declared 24 Dividends, which include 1 Special Dividend, 3 Interim Dividends and the rest 20 Final Dividends. Company for the year ending March 2022 Blue Dart Express has declared an equity dividend of 600.00 p[er cent amounting to Rs 60 per share. In early 2022, the company also declared an Interim Dividend of Rs 25 per equity share i.e. at 250%.

Stock Outlook

The Current Market Price (CMP) of the Blue Dart is Rs 8,170.50 /share on NSE. It was opened at Rs 8,148.55/Share, while the previous close was Rs 8,133.90/SHARE. The 52-week low was recorded at Rs 5,306.50/share and the 52-week high was recorded at Rs 8,199.55/share, respectively. The stock's CMP is Rs 63.75 below the 52-week high level which it touched on Friday before closing. It has a PE ratio of 50.72, while the sector PE ratio is 51.25.

Its share price moved up nearly 1.24 per cent last week & 20.05 per cent in the last 1 month, respectively. In the last 1 year, the stock has given a major upside of 40.63 per cent and 73.3 per cent in 5 years, respectively. It has delivered a multibagger return of 230.7 per cent in 3 years.

Motilal Oswal Maintains its neural rating with a Target Price of Rs 8200/share

Despite the extremely challenging past couple of years, Blue Dart Express has managed to grow revenue through improved volumes and realizations. Through its dedicated aircraft fleet service, its operations were less impacted as compared to pure Road transporters. Going forward, we expect margin to stabilize in the 16% range as BDE, with its strong brand image and established clientele, will be able to take the required price hikes to pass on the increase in costs. Blue Dart Express is also looking to increase its contribution from the Ground Express segment from current levels of 30-35%. The growth in Ground Express is expected to be 2x the growth in Air Express due to the cost differential between these services. With decent volume growth and margin, we expect Blue Dart Express to clock a revenue/EBITDA/PAT CAGR of ~13%/14%/14% over FY22-24. We maintain our Neutral rating, with a Target Price of Rs 8,200/share (20x FY24E EV/EBITDA).

Blue Dart Express Ltd.

Blue Dart Express Ltd., South Asia's premier express air and integrated transportation & distribution company, offers secure and reliable delivery of consignments to over 35,000 locations in India. It is a small cap logistics solutions provider company with a market capitalization of Rs 19,386.91 crore.

As part of the DPDHL Group's (DHL Express, DHL Global Forwarding & DHL Supply Chain) Post - E-commerce - Parcel (PeP) division, Blue Dart accesses the largest and most comprehensive express and logistics network worldwide, covering over 220 countries and territories and offers an entire spectrum of distribution services including air express, freight forwarding, supply chain solutions and customs clearance.

Disclaimer

The stock has been sourced from NSE & BSE. Greynium Information Technologies, and the Author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.