Specialty Chemical Stock Trading At A Dividend Yield of 25%: Do You Own?

Narmada Gelatines Ltd is a small cap company with a market cap of around Rs 256 Cr. Narmada Gelatines Ltd is a leasing manufacturer of ossein and gelatin in India. The state of Madhya Pradesh in central India is where the corporation is strategically situated. Despite having a multibagger return in a single year, the stock currently boasts a 25% dividend yield.

Narmada Gelatines Dividend

At their meeting on December 7, the company's board of directors approved a special interim dividend of Rs 100 per equity share with a face value of Rs 10 for the fiscal year (FY) 23. Narmada Gelatines has announced an equity dividend of 1100.00%, or Rs 110 per share, for the financial year ended March 2023. The dividend yield at the current share price of Rs 424 is 25.94%. The company has a solid track record of dividend declarations during the past five years. Narmada Gelatines Ltd. has issued 19 dividends since September 6, 2000, according to Trendlyne statistics.

Narmada Gelatines Financials

In the fourth quarter that ended in March 2023, net profit climbed 32% to Rs 4.62 crore compared to Rs 3.50 Cr in March 2022 quarter. The business's total income jumped from Rs 41.94 crore in Q4FY22 to Rs 50.05 crore in Q4FY23 or up by 19.35% YoY. Its EBIT stood at Rs 6.39 Cr in Q4FY23 up by 30.68% YoY from Rs 4.89 Cr in Q4FY22. While the total income for FY23 climbed to Rs 193.43 crore from Rs 160.56 crore in FY22, net profit for FY23 jumped by 23.8% to Rs 15.28 crore. The company is yet to declare its Q1FY24 results.

Narmada Gelatines Share Price

While writing this copy, the shares of Narmada Gelatines were trading on the BSE at Rs 424 apiece. The stock made a 52-week-high of Rs 566.15 on (16/12/2022) and a 52-week-low of Rs 163.00 on (16/08/2022). The stock price climbed from Rs 135.55 to the current market price during the past five years, resulting in a multibagger return of 212.80%. The stock price jumped from Rs 162.50 to the current market price during the past three years, resulting in a multibagger return of 170%. The stock price soared from Rs 200.10 to the current market price over the past year, resulting in a multibagger return of 111.89%. The stock has surged 30.80% YTD so far in 2023. During Q1FY24, the company recorded promoter shareholding of 75.00%, DIIs stake of 0.01% and public stake of 24.99%.

Narmada Gelatines Share Price Target

Narmada Gelatines Ltd (SHAWGELTIN)is smallcap and creamy layer - amongst the top performing stocks its its sector but it is highly volatile compared to its peers such as 54.35, Gujarat Fluorochemicals Ltd, Vinati Organics Ltd, Navin Fluorine International Ltd. Its Current RSI is around 58 at 14 Days EMA but its PE ratio is 17 which is lower than its peers. YoY has delivered over 110% to its investors. Its dividend record is also good. The current market price is around 426 and it's been almost 2 months. The price is trading in the 460 to 400 range. So, we can initiate fresh longs near the 390 to 360 range and have a target expectation of 500 to 800 in mid-term. Follow strict stop loss at 300 said V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT).

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.