Rs 32.05/Share Divided: Smallcap Tyre Stock To Trade Ex-Dividend On Monday For 320.50% Dividend Payout

Smallcap stock TVS Srichakra, operating in the tyres and rubber products, is set to trade ex-dividend on Monday for its dividend payout to the tune of 320.50% to shareholders. Accordingly, the stock will be in focus. Last week, the stock ended with an upside of at least 4.5% on BSE.

TVS Srichakra has recommended a dividend of Rs 32.05 per share (320.50%) on the face value of Rs 10/- per share) for the financial year 2022-23, subject to the approval of the shareholders, at the ensuing Annual General Meeting.

The company's period of book closure is from September 5th to September 20th for AGM and payment of dividends. Hence, the record date to determine the eligible shareholders for the dividend payout is September 4, which will also be the ex-dividend date.

The company will hold its 40th AGM through video conferencing and other audio-visual means on September 20, 2023.

Earlier, the company in its regulatory filing said, "We wish to inform you that the said dividend, when declared by the members, at the ensuing Annual General Meeting will be paid within 30 days from the date of declaration."

TVS Srichakra Limited, makers of TVS Eurogrip, Eurogrip and TVS Tyres brands of tyres is one of India's leading manufacturers and exporters of Two, Three-Wheeler tyres and Off-Highway tyres. Incorporated in 1982, it is one of the verticals of the USD 2 Billion TVS Mobility - the holding company for the businesses.

Last week, the company announced that TVS Eurogrip, one of the fastest-growing global brands in 2-wheeler & 3-wheeler tyres, and Off-Highway Tyres, participated in the Farm Progress Show 2023 from August 29th to 31st, 2023.

According to the filing, The tyre major displayed their off-highway tyres in booth no 1212 at the event. Some of the products displayed include the Tigertrac FL909 Steel Belted and FL900 Textile Belted flotation radials for agricultural transport and implements. Tigertrac RC 900 R-1 with narrow radials is designed for high-speed sprayers and row crop tractors, TR 45 R-1 bias tyres for farm tractors and Tigertrac R-1W for tractor radial tyres. The wide portfolio of bias implement tyres are represented by models such as IM 45, I 09, F-2 tractor front tyres and R-2 and I-3 flotation tyres such as the TM 09 and FL 09.

On August 31, Arvind Singh COO, of TVS Srichakra said, "We have made significant investments in capacity expansion and technology to cater to the growing demands from worldwide markets," adding "We believe such programs will help us expand our footprint in the USA."

On Friday, the smallcap stock closed at Rs 2,949.05 apiece, up by Rs 2.52% on BSE. The company's market cap is over Rs 2,258 crore.

TVS Srichakra has a good track record of paying dividends. The company has declared 24 dividends since July 2001, as per Trendlyne data. In the previous financial year (FY22), the company paid a dividend of Rs 16.30 per share.

At the current market price, the company's dividend yield is at 1.09%.