Multibagger smallcap stock hits back-to-back upper circuit ahead of ₹100 dividend record date. Do you own any?

Narmada Gelatines is small-cap stock that has touched back-to-back upper circuits on BSE in more than a week. The stock has continued on an eighth-day winning streak. Last week, on Friday, the stock had locked on a 52-week high which was also its 5% upper circuit. This specialty chemical stock will be in focus this week as it will turn ex-dividend ahead of the record date for a whopping ₹100 per share special dividend for the fiscal year FY23.

On BSE, Narmada stock ended at a fresh 52-week high of ₹566.15 apiece up by 5%. This is also the stock's 5% upper circuit. The company's market cap is around ₹342.50 crore.

From December 7th to date, the stock has only hit 10% to 5% upper circuit on BSE. During this period, the stock gained by at least ₹274.45 or 94.08%. Year-to-date, the stock has emerged as a multi-bagger with gains of more than 200%.

In a year, the stock has climbed nearly 232%, making many investors rich. Let's suppose if an investor had infused ₹1 lakh in Narmada in December last year, their corpus has risen to over ₹3.31 lakh as of now.

Narmada Gelatines has fixed December 19 as the record date for its special dividend of ₹100 per equity share having a face value of ₹10 each. Shareholders whose names appear in the registrar of the company by end of working hours on December 19, will be eligible for ₹100 equity share dividend.

In percentage terms, the dividend comes around by a huge 1,000%.

Since, the company has a 'T+1' settlement option which means that a stock is credited or debited from a Demat account in 24 hours, hence, its ex-dividend date is the same as the record date.

The company has a good track record of paying a dividend to its shareholders. In FY22, the company paid an equity dividend of 100% aggregating to ₹10 per equity share.

Incorporated in 1961, Narmada Gelatines has pioneered the manufacture of ossein and gelatin in India. The company is located in the Central Indian State of Madhya Pradesh and has convenient access to its main and essential inputs of crushed bones, acid, lime, and good-quality water.

For the first half of FY23, the company's revenue from operations stood at ₹89.61 crore versus ₹72.37 crore in the same period a year ago, while its net profit in H1FY23 rose to ₹5.04 crore against ₹4.45 crore in H1FY22.