Rs 157/Share Dividend: Small Cap Stock To Turn Ex-Dividend On Monday For 1570% Payout

Stovec Industries is a small-cap industrial company that recorded a market cap of Rs 550.55 Cr on Friday's closing session. The company has declared a 1570% special dividend and has fixed 21st August 2023 as the record date for the purpose of the same. Due to the T+1 settlement cycle of the company, the stock is going to trade ex-dividend on the same day i.e. on Monday.

The Board of Directors have approved "Declaration of one-time special dividend (interim dividend) of Rs. 157 per equity share of Rs. 10/- each (i.e. 1570 %) for the financial year 2023 on the occasion of 50th anniversary of the Company. Such dividend will be paid to the eligible members who hold the shares on the record date i.e. August 21, 2023 and the payment will be made on or before its due date," said Stovec Industries in a stock exchange filing.

On a standalone basis, the firm reported net sales of Rs 57.25 crore in the June 2023 quarter, down 10.99% from Rs 64.32 crore in the June 2022 quarter. Its net profit was Rs. 2.02 crore in Q1FY24, down 83.92% from Rs. 12.54 crore in Q1FY23. Stovec Ind's EBITDA reached Rs. 4.12 crore in the June 2023 quarter, down 60.72% from Rs. 10.49 crore in the same quarter of FY23, while Stovec Ind's EPS fell to Rs. 9.65 in Q1FY24 from Rs. 60.06 in Q1FY23.

Stovec Industries Share Price Target

"The government is trying to support the textile industry to boost its exports and to reduce finished goods imports. Need to understand more on this that companies who are directly or indirectly associated or engaged in this textile business will get more benefit from this movement. And now we have one more company in this array Stovec Industry. They are a very old name in the industry engaged in printing solutions mostly for the textile industry," said V.L.A. Ambala.

"They R&D and engineering solutions in-house. The overall strength indicator which is a relative strength indicator shows an optimum range for fresh long positions. Its current RSI at the monthly time frame is near 55 and at daily and weekly time Prem it is near 65 indicating that fresh positions can be initiated in this. Other hand prices follow a support frontline and until this friend line is supported we can continue holding this stock," said V.L.A. Ambala.

"The stock has witnessed shallow for three consecutive days and it has formed a police candlestick pattern virally known as pin bar indicating the lower price rejection. Aspect targets range from 2800 to 3500. Can consider a strict stop loss below 2400," said V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT).

On Friday, the shares of Stovec Industries closed on the BSE at Rs 2636.70 apiece up by 1.94% over the previous close of Rs 2586.60.

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