This debt free stock shall turn ex-dividend next week: Check key takeaways
2 min read 24 Jun 2022, 06:22 PM ISTWith a market cap of ₹16,697 crore, SKF India Ltd. is a mid-cap company that operates in the auto ancillaries industry. The company offers cutting-edge industrial and automotive engineering services.
PremiumWith a market cap of ₹16,697 crore, SKF India Ltd. is a mid-cap company that operates in the auto ancillaries industry. The company offers cutting-edge industrial and automotive engineering services. Six manufacturing plants, twelve offices, and more than 300 distributors make up SKF's pan-India presence. In India, SKF has also unified its operational processes into three different businesses: SKF India Limited, SKF Technologies (India) Pvt. Ltd., and SKF Engineering and Lubrication India Private Limited. According to facts available on Value Research and Screener, SKF India is a debt-free company. The Board of SKF India has set June 29, 2022 as the record date for the purpose of paying a 145.00 per cent dividend, which implies that the stock will go ex-dividend on June 28, 2022.
The company has said in BSE exchange filing that “The Board decided to recommend to the members final dividend of Rs.14.50/- per equity share for the financial year ended 31st March 2022, which shall be paid/dispatched within 30 days from the date of ensuing Annual General Meeting (‘AGM’), if declared and approved by the members at the AGM. Pursuant to Regulation 42 of SEBI LODR read with Section 91 of the Companies Act, 2013 including rules made thereunder, Wednesday, 29th June 2022 has been fixed as the Record date for the purpose of forthcoming AGM and Dividend, if declared at the AGM."
As 145.00 per cent equity dividend, or ₹14.5 per share, has been declared by SKF India for the fiscal year ending March 2022, this generates a dividend yield of 0.43 per cent at the current share price of ₹3,374.85 per share. The market price of SKF India's shares closed today at ₹3,374.85 (up 1.75 per cent from the previous closing of ₹3316.75) and in trade today the stock touched an intraday high of ₹3,394.95 up by over 2%. The stock has returned 29.56 per cent to shareholders over the last year, but it has fallen 10.11 per cent year-to-date (YTD) so far in 2022. In the past month, the stock has gained 4.39 per cent, and in the previous five trading days, it has climbed 6.80 per cent.
The stock has been rising over the past two days, returning more than 5.5 per cent during that time, and 5.76 per cent for the past week. At the current price level of ₹3,374.85 the stock is trading 20 per cent below its 52-week high and 34.86 per cent higher than its 52-week low. On the NSE, the shares of SKF India reached a 52-week high of ₹4,239.95 on 15th December 2021 and a 52-week low of ₹2,502.30 on 20th July 2021. Based on its closing price today, the stock is trading above its five-day, twenty-day, and fifty-day moving averages but below its one-hundred-day and two-hundred-day moving averages. A potential negative for the stock is that, with a current book value per share of 381.47, the stock is currently trading 8.85 times its book value at the current market price.
