This small cap multibagger stock approves 50% interim dividend, rallies 140% in one year

The small cap company Ujjivan Financial Services Ltd has announced that company's board of director an interim dividend of 50 per cent, i.e., ₹5 per equity share. The company has a market capitalisation of ₹3,436.80 crore.

“We hereby inform that the Board of Directors in its Meeting held today on March 10, 2023, has considered and approved an Interim Dividend of 50% i.e. Rs. 5 per equity share of Rs. 10/- each,” said Ujjivan Financial Services in its regulatory filing on 10 March, 2023.

The company has set March 20, 2023 as the record date for the said dividend.

“The Board Meeting commenced at 03:00 PM and the above proposal of interim dividend was approved at 03:35 PM. The record date for the aforesaid interim dividend shall be March 20, 2023,” the filing added.

The shares of Ujjivan Financial Services closed 0.98 per cent down at ₹282.50 on BSE. The stock climbed from a price of ₹116.55 per share to the current market price during the course of the past year, resulting in a multibagger return of 142.39 per cent. It has gained 1.60 per cent YTD so far in 2023.

The stock touched a 52-week-high of ₹313.30 on 23 November, 2022, and its 52-week low of ₹100.70 on 31 March, 2022.

Ujjivan Financial Services is a holding company of Ujjivan Small Finance Bank, a leading small finance bank in India.

In Q3FY23, Ujjivan Financial Services consolidated net profit stood at ₹297.98 crore as compared to a loss of ₹181.56 crore in the corresponding quarter last fiscal. The net interest income for ₹1121.16 crore for the quarter under review from ₹689.27 crore in the corresponding quarter last fiscal. While, Ujjivan Small Finance Bank too reported a net profit of ₹293 crore for the December quarter against ₹34 crore loss in the year ago period. The bank's operating profit jumped 153 per cent at ₹389 crore as against ₹154 crore earlier.