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3 low debt chemical stocks that recently announced record date for dividend

Polychem Ltd, Rossari Biotech are the two debt-free stocks which shareholders should take note of apart from the dividend purpose and Alkyl Amines Chemicals Ltd has reduced its debt-to-equity ratio to 0.02 for the financial ended March 2022. (MINT)Premium
Polychem Ltd, Rossari Biotech are the two debt-free stocks which shareholders should take note of apart from the dividend purpose and Alkyl Amines Chemicals Ltd has reduced its debt-to-equity ratio to 0.02 for the financial ended March 2022. (MINT)

  • Shareholders of Polychem Limited, Rossari Biotech Ltd, Alkyl Amines Chemicals Ltd should watch these stocks ahead for the purpose of dividend as the Board have announced the record date.

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Shareholders of Polychem Limited, Rossari Biotech Ltd, Alkyl Amines Chemicals Ltd should watch these stocks ahead for the purpose of dividend as the Board have announced the record date. Among these companies Polychem Ltd, Rossari Biotech are the two debt-free stocks which shareholders should take a note of apart from the dividend purpose and Alkyl Amines Chemicals Ltd has reduced its debt-to-equity ratio to 0.02 for the financial ended March 2022 which is the lowest compared to the last 5 years and a low debt to equity ratio indicates that Alkyl Amines Chemicals is almost debt-free in addition equity may be used to fund the company's assets rather than borrowing or debt and the company has also 34% CAGR over last 5 years which can be sound good for the investors.

Polychem Ltd

The Board of the company in their meeting held on 26th May had recommended a dividend of Rs. 3.00/- per share of 10/- each i.e 30% on the equity shares of the company for the financial year ended 31st March, 2022, subject to the approval of shareholders. For the purpose of dividend payment the company informed BSE on 24th June that “This is to inform you that pursuant to section 91 of the Companies Act, 2013 read with Rules framed thereunder and Regulation 42 of SEBI (LODR) Regulations, 2015, the Register of Members and Share Transfer Books of the Company will remain closed from Friday, 15th July, 2022 to Friday, 22nd July, 2022 (both days inclusive) for the purpose of Dividend, if any for the financial year ended 31st March, 2022. The Member’s whose names shall appear on the Company’s Register of Members as on Thursday, 14th July, 2022 shall be eligible for dividend on Equity shares, if declared at the Meeting."

The stock gained 5.24 per cent from its previous close of 608.05 and it closed today at 639.90. Year-to-date (YTD), the stock has generated gains of 20.29 per cent so far in 2022. In addition to being debt-free, the stock currently trades at 0.90 per cent times its book value per share of 708, which is a healthy outcome for the stock.

Rossari Biotech

On 19th May, the company had said in its exchange filing that its Board of Directors have approved “Final Dividend of25% (i.e. Re. 0.50 /- per share) on Equity Shares of the Face Value of Rs. 2/- each for the Financial Year ended March 31, 2022, subject to approval of the Shareholders at the forthcoming Annual General Meeting ("AGM") of the Company. Information regarding Book closure and record date for payment of Final dividend will be intimated separately."

For the dividend payment purpose, the company has fixed Friday, 08 July, 2022 as the record date. From its previous close of Rs. 867.25, the stock fell by 0.95 per cent today to settle at Rs. 859. The stock has fallen 35.31 per cent in price on a year-to-date (YTD) basis so far in 2022. The stock's 52-week high is 1,619 and is currently trading at a discount of 47% from its 52-week-high, which brings a buying opportunity. However, at the current book value per share of 142.49, the stock is trading at 6.02 times its book value, which may sound alarmingly high.

Alkyl Amines Chemicals

The Board of Directors of the company recommended a final dividend of Rs. 10/- per equity share of Rs. 2/- each (i.e., 500 percent) for the fiscal year 2021–2022 at their meeting held on May 19, 2022. For the purpose of paying dividend, Alkyl Amines Chemicals on 23rd June informed BSE that “Company has fixed Monday, July 25, 2022 as the “Record Date" for determining entitlement of Members to dividend for the financial year ended March 31, 2022, if approved at the AGM."

As Alkyl Amines Chemicals has announced a 500.00% equity dividend, or 10 per share, for the fiscal year ending March 2022, this represents a dividend yield of 0.38 per cent at the current share price of 2600. The stock dropped 0.33 per cent to close today at 2,600 from its previous level of 2608.55. The stock has lost 30.84 per cent of its value year to date (YTD) so far in 2022. Low debt and a robust CAGR of over 34% over the past five years can be positive for the stock, but the stock's high EV/EBITDA ratio of 42.78x and current book value per share of 193.73 which in turn makes the stock currently selling 13.42 times its book value can be problematic.

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