Multibagger stock rallies over 140% in 1 year, Board declares ₹6.50 per share dividend: Do you own?

A small cap business with a market valuation of ₹1,462.34 Cr is Tanfac Industries Ltd. Tanfac is involved in the production of oleum, sulphuric acid, and anhydrous hydrofluoric acid. Aluminium Fluoride, Potassium Fluoride, Potassium Bifluoride, Complexes of Boron Trifluoride, Gypsum Calcium Sulphate, IsoButyl Acetophenone, Acetic Acid, Peracetic Acid, and Poly Aluminium Chloride, among others. Anupam Rasayan India Limited and Tamil Nadu Industrial Development Corporation (TIDCO) are joint promoters of Tanfac Industries Ltd.

The company has informed stock exchanges that the Board of Directors have “Recommended dividend of Rs.6.50/- per equity share of Rs. 10/- each for the financial year ended 31st March, 2023. The Book Closure and Record Date for this purpose will be intimated in due course.” Tanfac Industries has announced an equity dividend of 90.00% at a face value of ₹10, or ₹9 per share, for the fiscal year ended March 2022 or FY22. This generates a dividend yield of 0.61% at the current share price of ₹1466. The business has a solid track record of dividend declarations during the past five years. Since May 23, 2001, Tanfac Industries Ltd. has issued 11 dividends. Tanfac Industries Ltd. announced an equity dividend in the amount of ₹5.50 per share over the past 12 months. This generates a dividend yield at the current share price of ₹1466.00 of 0.38%.

The company has reported total income of Rs. 121.82 during the period ended March 31, 2023, up by 78.40% YoY from ₹68.28 Cr reported during the year-ago quarter. Tanfac Industries recorded a net profit of ₹22.37 Cr during Q4FY23, up by 217.02% from ₹7.05 Cr in Q4FY22 and its EPS reached ₹22.43 during Q4FY23, up by 216.81%, from ₹7.08 in Q4FY22. 

On Friday, the shares of Tanfac Industries closed on the BSE at ₹1466 apiece level, down by 2.31% from the previous close of ₹1500.60. The stock has produced a multibagger return of 1,060.73% over the past five years, and a multibagger return of 993.62% during the past three years. It achieved a multibagger return of 142% during the past year, and YTD, it has returned 60.14% in 2023. The stock touched a 52-week-high of ₹1,550.75 on (19/04/2023) and a 52-week-low of ₹433.50 on (12/05/2022). During Q4FY23, the company recorded a promoter shareholding of 51.81% and a public stake of 48.19%.