Multibagger stock declares 100% dividend, scrip rallies over 2000% in 3 years

A small cap firm with a market valuation of Rs. 4,228.46 Cr. is Rajratan Global Wire Ltd. The company is focused on producing drawn steel wires for a variety of industrial uses, especially in the automotive and construction/engineering industries. As of right now, Rajratan is not only Thailand's sole manufacturer of bead wire but also India's top manufacturer and supplier of bead wire. 

“The Board has recommended final dividend subject to approval of members at the ensuing Annual General Meeting @ 100% i.e. Rs. 2.00 Per equity shares for financial year 2022-23,” said the Board of Directors of Rajratan Global Wire in a stock exchange filing.

Rajratan Global Wire has announced an equity dividend of 100.00% at a face value of ₹2 equating to ₹2 per share for the fiscal year that ended in March 2022, or FY22. This generates a dividend yield of 0.24% at the current share price of ₹860. The company has a solid track record of dividend declarations during the past five years. According to statistics from Trendlyne, Rajratan Global Wire Ltd. has issued 21 dividends since July 10, 2001. 

The company recorded a consolidated net revenue of ₹219.43 crore in the quarter ended March 2023, down by 11.37 YoY from ₹247.57 Cr reported during the year-ago quarter. The company said its EBITDA stood at ₹33.8 Cr during Q4FY23, down by 28.92% YoY from ₹47.55 Cr in Q4FY22. Rajratan Global Wire recorded a net profit of ₹20.27 Cr during Q4FY23 compared to ₹37.03 Cr recorded during Q4FY22, representing a fall of 45.26% YoY. The EPS of Rajratan Global Wire reached ₹3.99 in Q4FY23 as against ₹7.29 in Q4FY22.

On Friday, the shares of Rajratan Global closed on the NSE at ₹860 apiece, down by 2.49% from the previous close of ₹881.95. The stock has produced a multibagger return of 2,206.87% over the past five years and 2,010.23% during the past three years. The stock has gained 36.51% over the past year, but YTD, it has fallen 3.65% so far in 2023. The stock touched a 52-week-high of ₹1,409.90 on (08-Sep-2022) and a 52-week-low of ₹539.40 on (17-Jun-2022). During Q4FY23, Rajratan Global Wire recorded a promoter shareholding of 65.10%, FIIs stake of 0.62%, DIIs stake of 8.03% and a public stake of 26.23%.