Multibagger small-cap stock declares 125 per cent dividend; Do you own it?

The stock has witnessed significant buying activity as it has given multibagger returns of more than 150 per cent in just 1 year

Kirloskar Oil Engines is a leader in the manufacturing of engines, farm equipment and generator sets with a sizable presence in international markets. It also manufactures world class engines for construction equipment. It specialises in manufacturing air-cooled and liquid-cooled engines for generator sets across a wide range of power outputs (2kVA to 1500 KVA). It has a significant presence in diesel and electric pump sets, power tillers, specialised fishing engines markets, among others

In Q4FY23, the consolidated revenue from operations surged 17 per cent from last year’s same quarter to Rs 1383 crore. The net profit of the company zoomed 30 per cent from corresponding quarter last year to Rs 270.3 crore.

It was another strong quarter for KOEL as they achieved standalone revenue of Rs 1,000 crore for the third consecutive quarter. The B2B segment experienced a growth rate of 17 per cent due to high demand in the Powergen and Industrial business. Additionally, the B2C segment showed a growth of 14 per cent during the quarter. The company's overall annual revenue increased by 25 per cent, in line with their 2X-3Y strategy.

The company remains committed to its five crucial pillars of core growth, technology, channel, operations excellence, and people. Progress has been observed in each of these areas, with some already yielding positive outcomes and others expected to do so in the near future. The company's immediate focus is on the CPCB 4+ transition, which is progressing well. As the advancements made on these pillars are evaluated, confidence in the company's capabilities continues to grow.

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During the meeting held on May 19, 2023, the Board of Directors recommended a final dividend of Rs. 2.50 (125 per cent) per equity share of Rs. 2/- each for the Financial Year 2022-23, pending shareholder approval. This brings the total dividend for the year to Rs. 5.00 (250 per cent) per share.

On Friday, shares of Kirloskar Oil Engines dipped by 3.55 per cent to close at Rs 415.90 apiece on BSE.

The stock has witnessed significant buying activity as it has given multibagger returns of more than 150 per cent in just 1 year. Keep a close eye on this trending stock.