Small-cap stock that paid 71 times dividend since 2002 hits milestone of ₹5,000 mark

Today, the stock witnessed a sharp upward move of 9%, hitting a high of ₹5,426 on NSE. The stock has been building up momentum as it rallied 15% since its quarterly results were declared on July 25th, 2024.

Foseco India, a net-debt free foundry consumable manufacturer, has received maximum benefit from the government’s infrastructure push with schemes such as the National Infrastructure Pipeline and Make in India. Furthermore, the continuation of infrastructure-related policies in the recent budget seems to be working in favor of the stock. A positive outlook on the economy is also expected to support the growth of the foundry industry.

For the quarter, the company reported net sales of ₹125.01 crore in June 2024, up 3.36% from ₹120.95 crore in June 2023. EBITDA stands at ₹27.58 crore in June 2024, up 15.45% from ₹23.89 crore in June 2023. Net profit declined by 33.12% to ₹18.50 crore in June 2024 from ₹27.66 crore in June 2023. In the quarter ended June 2023, the net profit was supported by higher income, which included exceptional items of ₹11.49 crore.

The company has declared 71 dividends since April 8, 2002, accumulating to over ₹437.4 per share. The company has a good dividend track record and has consistently declared dividends for the last 22 years, sometimes even declaring a special dividend. In FY24, it declared an equity dividend amounting to ₹25 per share. At the current share price of ₹5002.4, Foseco India Ltd.'s dividend yield is 0.50% for the year.

Since FY20, the company has declared six dividend amounts cumulatively amounting to ₹105. Foseco is one of the small-cap stocks with the highest number of dividends paid since 2002.