Massive Breakout in dividend champion stock: Stock skyrockets 14 per cent; announces 450 per cent interim dividend!

The Profit After Tax (PAT) was Rs 76.8 crore vs Rs 44.9 crore a year ago, supported by improved margin through portfolio premiumisation, healthy mix and optimization of expenses.

P&G Health Ltd (formerly Procter & Gamble td) Health Ltd (erstwhile Merck Limited) is engaged in the business of manufacturing and marketing of pharmaceuticals and chemicals.   

On Monday, the stock witnessed a multi-month breakout as it logged a fresh, nearly 12-month high. Furthermore, the stock has logged this breakout along with massive volume jump as volume recorded for the day was highest since mid-May 2019.   

Company recently announced its financial results for the quarter ended December 31, 2022. The company has recorded a robust performance with sales of Rs 304.7 crore for the quarter ended December 31, 2022, vs Rs 273.3 crore a year ago, up by 11 per cent. The Profit After Tax (PAT) was Rs 76.8 crore vs Rs 44.9 crore a year ago, supported by improved margin through portfolio premiumisation, healthy mix and optimization of expenses. Sales for the six-month period ending December 31, 2022, are Rs 596.6 crore vs Rs 541 crore a year ago, up by 10 per cent. Profit After Tax for same period is Rs 140.5 crore vs Rs 100.2 crore a year ago, up by 40 per cent.    

Interestingly, the stock has announced a massive interim dividend of 450 per cent i.e. Rs 45 per equity share (Face Value Rs 10). Record date for the purpose of eligibility for payment of said Interim Dividend shall be February 13, 2023. Since 2013, the stock has announced dividend on a consistent basis.   

The stock has delivered an impressive return of 18.97 per cent on YTD basis.