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The shares of Narmada Gelatines Ltd were in focus on Thursday after the company declared a special dividend. Its shares were trading at ₹ 292 levels on Wednesday and were locked at ₹ 385.00 on Thursday, indicating an increase of 31.85%. 

After the announcement, they gained a whopping 20% and hit the upper circuit limit. Thereafter, on Thursday, they had a gap-up opening and were locked in a 10% upper circuit since the beginning of the trading session. 

Narmada Gelatine is a small-cap company that manufactures ossein and gelatine in India. It is a frontrunner in India’s gelatine industry, meeting the standards of various users worldwide. 

According to the data available on the Bombay Stock Exchange (BSE), the company has declared a special interim dividend of ₹ 100 per equity share (1000% of the face value of ₹ 10) for the financial year 2022-23. 

Earlier it had fixed the record date for this purpose on Thursday, December 15, 2022. However, it changed it to Monday, December 19th, 2022. Shareholders who hold the shares as of Monday will be entitled to the special interim dividend. The ex-date for this purpose is also December 19, 2022, according to the data available on the BSE. 

For the July-September quarter (Q2FY23), the company’s standalone net profit surged 130.9% to ₹ 2.84 crores from ₹ 1.23 crores, on a 32.1% jump in net sales to ₹ 46.38 crores in Q2 FY23 over ₹ 35.12 crores in the corresponding quarter last year (Q2 FY22). 

Narmada Gelatine has gained 122.87% in the past year. If an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.23 lakhs today! 

It is a small-cap company with a market capitalisation of ₹ 212 crores. The company has a return on equity of 8.69% and is almost debt free with a debt-to-equity ratio of 0.01. Its shares are trading at a price-to-equity ratio (P/E) of 16.38 which is slightly higher than the industry P/E of 0.01. Further, it has a good dividend yield of 2.86%. 

Written by Simran Bafna 

Disclaimer

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