Dividend stock: Small-cap share hits life-time high after Q4 results

Dividend stock: Small-cap company AVG Logistics Ltd, which deals in rail and other logistics business announced Q4 results on Monday after the market hours. So, the small-cap stock was in focus today as the company board had declared strong fourth quarter results along with Re 1 per share dividend to its eligible shareholders. As expected AVG Logistics share price today opened with upside gap and went on to hit life-time high of ₹238 apiece on NSE.

AVG Logistics results 2023

In Q4 results announced on Monday, AVG Logistics reported strong growth in profit, which was powered by rise in revenue in rail transport business. The logistics company reported a net revenue of ₹429.90 crore whereas its EVIDTA stood at ₹77.74 crore. Company's EBIDTA margin stood at 18.08 per cent against 9.56 per cent in corresponding quarter in previous financial year i.e. in Q4FY22.

Re 1 per share dividend

While discussing the audited quarterly results of the company, board of directors also approved Re 1 per share dividend to its eligible shareholders. However, record date for dividend is yet to get fixed by the board of directors of this logistics company.

Informing Indian stock market bourses about the final dividend, AVG Logistics said, "We wish to inform that board of directors of the company has approved Re 1 per share final dividend payable for the financial year 2022-23."

The board of directors of the company also approved allotment of 8,50,000 convertible warrants convertible into one equity share of ₹10 each to promoters on a preferential basis at price of ₹222.60 per warrant.

The small-cap company board also approved preferential allotment of 650,000 convertible warrants convertible into one equity share of ₹10 each to non- promoters on a preferential basis at price of ₹222.60 per warrant.

AVG Logistics share price history

AVG Logistics shares are one of the multibagger stocks that Indian stock market has produces in last one year. In year to date (YTD) time, this small-cap stock has risen from around ₹118 to ₹238 apiece levels, delivering around 100 per cent return to its shareholders. In last one year, this dividend stock has risen from near ₹65 to ₹238 apiece levels, logging more than 250 per cent rise in this time. In post-Covid rebound, this small-cap stock surged from around ₹23 to ₹238 apiece levels in last three years, delivering to the tune of 950 per cent to its long term shareholders.

Speaking on fourth quarter results for the financial year 2022-23, Sanjay Gupta, Managing Director & CEO at AVG Logistics said, “We are happy to report strong growth in profit for FY23. This was possible due to increased revenue from the high margin reefer and rail transport business. The Company has expanded its capacity in the QSR and cold chain solutions space. AVG has signed a contract with leaders in the FMCG segment and QSR players and entered into the Ice-cream space, deepening its presence in the North-East region. We are expanding the capacity of high margin reefer in FY24 which would add to our bottom line substantially."