Rs 60/Share Dividend: Zero Debt Firm Turns Ex-Dividend; Who Are Eligible For 600% Dividend Payout?

Industrial & Prudential Investments, is a smallcap stock, trading near Rs 2,900 levels. It has emerged as a multi-bagger with its 5-year performance that has seen a triple-digit upside in percentage terms. On Thursday, the stock listed on BSE will be in focus as it will trade ex-dividend for a 600% dividend payout which is likely to be paid in the first week of September. Among the positives is that the company is debt-free coupled with an impressive equity investment portfolio, Also, its MACD signals a bullish indicator on the stock, even when it is overbought.

The company will pay a dividend of Rs 60 per equity share (600%) for the financial year 2022-23.

As per the regulatory filing, the company said, the board had fixed Thursday, August 17, 2023, as the Record Date for determining the entitlement of Members to pay dividends and approved the closure of the Register of Members and Share Transfer Books of the Company from Friday, 18th August 2023 to Thursday, 24th August 2023 (both days inclusive) for taking record of the Members of the Company for payment of dividends at the AGM for the financial year ended March 31, 2023.

Hence, the record date is fixed as August 17. Thereby, the stock trades ex-dividend on Thursday.

At the time of writing, in the opening bell of Thursday, the stock traded at Rs2805 apiece, down by 1.24% on BSE. The market cap is over Rs 470 crore.

The proposed dividend is subject to approval at the ensuing annual general meeting (AGM) which is scheduled on August 24. If approved in the AGM, the dividend payout shall be made on September 4, 2023.

Who will get the dividend benefit?

According to the filing, here are investors who are eligible for a 600% dividend payout:

- To all Beneficial Owners in respect of shares held in dematerialized form as per the data made available by the National Securities Depository Limited (NSDL) and the Central Depository Services (India)
Limited (CDSL) as of the close of business hours on August 17, 2023;

- To all Members in respect of shares held in physical form after giving effect to valid transfers in respect of transfer requests lodged with the Company on or before the close of business hours on August 17, 2023.

On Wednesday, the company's share price ended at Rs 2900.35 apiece, down by 0.5% on BSE.

Industrial & Prudential share price has given significant returns for 5 years. Its monthly upside is nearly Rs 529 or 22.3, while six-monthly gains are around Rs 1,040 or 56%. Year-to-date, the stock has jumped by Rs 1,025 or 55% on BSE.

In a year, the stock has advanced by Rs 1,191 or 70%. But in 5 years span, the stock emerged as a multibagger and rallied by a whopping Rs 1,718.25 or 145.4%. The stock's all-time gains of Rs 2,860.00 or 7,150% since mid-1995.

As per the ICICI Direct website, this 90-year-old Mumbai-based investment company has zero debt along its 100% subsidiary, New Holding & Trading Company has an excellent equity investment portfolio.

As per Trendylne data, the stock's RSI is 78 which is considered overbought, while the day's MFI is 89.9 also considering strongly overbought. This implies that the stock may see some pullback.

However, the day's MACD comes around 131.4 for the stock --- which is a bullish indicator. The company's weekly average delivery volume is 83.24%. Also, Trendlyne highlighted that the stock is trading above 8 out of 8 SMAs, and it's trading above 6 out of 9 Oscillators in the bullish zone.

The company touched a new 52-week high of Rs 2,947.95 apiece in the past 7 days, also it is trading near this record level.

From its 52-week low of Rs 1,505.80 apiece, the stock is up by nearly 93% on BSE as of August 16, 2023.

During the June 2023 quarter, the company posted a standalone net profit of Rs 12.14 crore versus Rs 11.38 crore in Q1FY23, while revenue stood muted at Rs 13.48 crore as against Rs 11.63 crore in the same quarter a year ago. The company's dividend income contributed the most to the top line and came in at Rs 12.84 crore in the first quarter of FY24, as against Rs 11.23 crore in Q1FY23.