“Dividend” is a regular profit-sharing payment that is made between a company and its stakeholders. A company’s Board of Directors is the decision-making authority when it comes to the determination of dividends to be paid on each share. Dividend stocks are potential sources of a stream of income, especially during inflationary periods.
Listed below is one multibagger stock from the “Tata Group” universe to watch out for that will be trading ex-dividend this month:
Benares Hotels Limited
With a market capitalization of Rs 650 crores, the shares of Benares Hotels Limited started their trading session on Monday at Rs 5,099.25 and currently trade at Rs 5,063.30, a gain of around 1.60 percent as compared to the previous closing levels of Rs 4,984.90 apiece.
Keeping a purview of one year, the company’s stock has delivered multibagger returns of approximately 123 percent to its stakeholders. The same means a 1 Lakh investment would have converted to Rs 2.23 Lakhs within a period of one year if someone would have invested in the stock.
The company has declared a Final Dividend of Rs 20 per equity share, a 200 percent payout compared to the Face Value of Rs 10 each. The company has a dividend yield of 0.40 percent.
The ex-date/record date, due to the “T+1” settlement cycle for financial instruments, is fixed to be 17th August 2023. The dividend payment will be done on or after 4th September 2023.
Digging into the standalone numbers reported by the company, the operating revenues as well as net profits, on a YoY basis, went up with the former increasing from Rs 49 crores during FY21-22 to Rs 93 crores during FY22-23, and, the latter showing more than a four-fold increase from Rs 5 crores to Rs 23 crores during the same time horizon.
Benares Hotels Limited, a subsidiary of The Indian Hotels Company Limited (IHCL), is engaged in the business of operating various hotels in India including the Ginger Hotel in Maharashtra, the Taj Nadesar Palace and the Taj Ganges hotel properties in Varanasi, etc.
Written by Amit Madnani
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