Dividend inventory: Multibagger small-cap inventory declares ₹53 per share dividend. Do you have to purchase earlier than document date?

Dividend Inventory: Multibase India, a multibagger small-cap inventory, has grabbed consideration with its newest dividend declaration. The corporate introduced an interim dividend of ₹53 per share for the monetary 12 months 2024-25, which is 530% of its face worth of ₹10 per share.

Historic Dividend Announcement

In an trade submitting dated November 13, Multibase India acknowledged, “Beneficial interim dividend of INR 53/- (Rupees Fifty-Three solely) per fairness share having a face worth of INR 10/- (Rupees Ten solely) every, for the monetary 12 months 2024-25.” The document date for figuring out eligible shareholders has been set for November 27. This implies solely shareholders who personal the inventory earlier than this date will obtain the dividend payout. These shopping for shares after November 27 is not going to qualify for this substantial dividend.

The corporate plans to pay or dispatch the dividend on or earlier than December 12, 2024, after relevant taxes. This marks a major milestone for Multibase India, because the payout is the very best within the firm’s historical past. Beforehand, the agency declared dividends of ₹3 in August 2024, ₹2 in September 2023, Re 1 in September 2022, and ₹2 in September 2021, as per knowledge from the BSE web site.

Multibase India’s strong monetary outcomes for the quarter ending September 2024 have added to investor confidence. The corporate reported a 113.43% surge in internet revenue, reaching ₹4.29 crore, up from ₹2.01 crore in the identical interval final 12 months. Income additionally noticed a formidable enhance of 13.28%, rising to ₹18.42 crore from ₹16.26 crore in September 2023, as reported by Enterprise Commonplace.

Based in 1991 as Synergy Polymers Restricted, Multibase India has advanced considerably through the years. The corporate, which specialises in manufacturing thermoplastic elastomers and silicone-based merchandise, modified its title to Synergy Multibase Restricted in 2002 and eventually to Multibase India Restricted in 2007. The specialty chemical compounds producer serves a distinct segment market with its modern product choices.

Inventory Efficiency and Traits

Multibase India’s inventory has delivered stellar returns for buyers, making it a multibagger. The inventory has surged over 109% prior to now 12 months and gained 102.3% year-to-date. Following the latest dividend announcement on November 13, the inventory rallied round 20% over three consecutive buying and selling periods. Notably, it recorded an almost 79% acquire in November alone, regardless of a 4% decline in October.

The inventory reached a 52-week excessive of ₹472 throughout intra-day buying and selling on November 19, closing the session at ₹467.25. It has appreciated by greater than 117% from its 52-week low of ₹215.15, which it hit in November final 12 months.

Ought to You Purchase Earlier than the Document Date?

Funding specialists have supplied their tackle whether or not to purchase Multibase India shares forward of the document date. Anshul Jain, Head of Analysis at Lakshmishree Funding and Securities, commented, “Multibase India shares are among the many multibagger shares which have delivered robust returns in recent times. The small-cap inventory was buying and selling within the ₹180 to ₹300 vary over the past 5 years however has lately damaged out, creating a brand new assist degree at ₹400.”

Jain steered that shareholders might use ₹400 as a trailing cease loss and famous that the inventory is a robust buy-on-dips candidate. For brand new buyers, he really useful a medium to long-term goal of ₹750 whereas emphasising the significance of sustaining a strict cease loss at ₹400 for any new positions.

With a record-breaking interim dividend, robust quarterly outcomes, and stable inventory efficiency, Multibase India has positioned itself as a compelling funding. Nevertheless, potential buyers ought to weigh the alternatives towards the inventory’s latest surge and keep prudent threat administration methods, as suggested by market specialists.

Disclaimer: The views and suggestions above are these of particular person analysts or broking firms, not Mint. We advise buyers to examine with licensed specialists earlier than making any funding selections.