Rs 13/Share Dividend: Large Cap Stock Sets Record Date For 650% Dividend Payout

On Friday's closing session, Cummins India, a large cap firm, had a market worth of Rs 52,740.07 Cr. The nation's top producer of diesel and natural gas engines is Cummins India Limited. The Board of Directors have recommended a final dividend of 650% for FY23, and for the purpose of the same the company has announced record to determine the eligibility of shareholders.

"The Board of Directors have recommended Final Dividend of Rs. 13/- (650%) per equity shares on 277,200,000 equity shares (Face Value Rs. 2/- each fully paid up) for the financial year ended on March 31, 2023, in addition to the interim dividend of Rs. 12/- per share declared on February 08, 2023. The said final dividend, if approved by the Members at the Annual General Meeting, will be paid on August 31, 2023," said Cummins India in a stock exchange filing.

While announcing the record on Friday, Cummins India informed stock exchanges that "The Company has fixed Wednesday, July 26, 2023, as the Record Date to determine the Members eligibility to receive Dividend recommended by the Board of Directors of the Company in their Meeting held on May 24, 2023, for the Financial Year 2022- 23. The payment of dividend shall be made on August 31, 2023, subject to approval of Members at the 62nd AGM of the Company."

The company's total standalone sales for the quarter ended in March 2023 were Rs 1,889 Cr, up 29% YoY from Rs 1,468.50 Cr in the quarter ended in March 2022. The standalone net profit of Cummins India in Q4FY23 was Rs 319 Cr, up 68% from the Rs 189.15 Cr recorded in Q4FY22. The EPS went up from Rs 6.82 to Rs 11.49. The total standalone sales for the fiscal year that ended on March 31, 2023, were Rs 7,612 Cr, up 26% from Rs 6,025 Cr in FY22. Its standalone net profit for 12MFY23 was Rs 1,130 Cr, up 27% YoY from Rs 887 Cr for 12MFY22. The company is yet to declare its Q1FY24 results.

Cummins India has announced an equity dividend of 1250.00% at a face value of Rs 2 or Rs 25 per share for the financial year ended in March 2023. The dividend yield at the current share price of Rs. 1902.60 is 1.31%. The company has a solid track record of dividend declarations during the past five years. Cummins India Ltd. has issued 45 dividends since July 9, 2001, according to Trendlyne statistics.

On Friday, the shares of Cummins India closed on the BSE at Rs 1902.60 apiece level down by 0.70% from the previous close of Rs 1916.00. The stock made a 52-week-high of Rs 1,953.95 on (03/07/2023) and a 52-week-low of Rs 1,083.00 on (14/07/2022). The stock price climbed from Rs. 647.70 to the current market price during the past five years, resulting in a multibagger return of 185%. The stock price soared from Rs 393.10 to the current market price over the past three years, resulting in a multibagger return of 343.50%. The stock has gone up 70.31% over the past year, and it has risen 37% year to date (YTD) in 2023.

During Q4FY23, the company reported promoter shareholding of 51.00%, FIIs stake of 13.99%, DIIs stake of 23.61%, Govt stake of 0.20%, and public stake of 11.20%.