Shares of this Penny stock will be trading ex-dividend next month and the dividend yield numbers look lucrative. In the last one month period, the scrip has soared more than 8 percent.
With a market capitalization of Rs 250 crores, the shares of IL & FS Investment Managers Limited traded in the green today and closed at Rs 8.00, gaining around 1.30 percent compared to the previous closing levels of Rs 7.90.
The company, through a regulatory filing with the BSE dated 5th July 2023, announced a Final dividend of Rs 0.80 per share exhibiting a dividend yield of a whopping 10 percent. The ex-date, as well as the record date due to the ‘T+1’ settlement, is set to be 17th August 2023.
The company has a history of huge dividend payouts as a percentage of its face value of Rs 2 with a payment of Rs 15 percent (Rs 0.30) in FY20-21 and 20 percent (0.40) in FY21-22.
Digging into the financials reported by the company, the operating revenues have witnessed a decent amount of growth moving from Rs 41 crores during FY21-22 to Rs 64 crores in FY22-23. Due to increasing costs, the net profit numbers have stayed uniform and were reported at Rs 13 crores during the last couple of financial years.
Having a ‘nil’ debt-to-equity ratio, the company also reported an increase in the profitability metrics such as the return on equity (RoE) as well as the return on capital employed (RoCE) in the recent period. The RoE moved from 3.69 percent during FY21-22 to 5.53 percent in FY22-23, and, RoCE took a shift from 6.18 percent to 7.15 percent keeping the timeframe the same.
IL & FS Investment Managers Limited, founded in 1989, is an asset manager seeking to invest in various sectors, some of which include healthcare, fintech, renewable energy, agriculture, etc. It also makes real estate investments in retail, office, and industrial properties.
Written by Amit Madnani
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