Penny stock at Rs 81.10 hit back-to-back 20 per cent upper circuits as the company announces 400 per cent dividend!

From Rs 56.95 (April 12, 2024 closing price) to Rs 81.10 (April 16, 2024, closing price), the stock gained 42.40 per cent.

Fortis Malar Hospitals Ltd, established in 1992, is a subsidiary of Fortis Hospitals Limited under the Fortis Group. It operates a super speciality and multi-speciality corporate hospital in Chennai offering medical care in a wide range of specialities including cardiology, neurology, paediatrics, and gastroenterology. The company leases the hospital building from another Fortis subsidiary and provides services through an agreement, utilizing its infrastructure that includes around 180 beds, intensive care units, operation theatres, and advanced diagnostic equipment.

On Tuesday, shares of Fortis Malar Hospitals Ltd hit 20 per cent upper circuit to Rs 81.10 per share from its previous closing of Rs 67.59. The shares of the company saw a spurt in volume by more than 5.06 times on BSE. The stock’s 52-week high is Rs 91.33 while its 52-week low is Rs 44. In the recent trading sessions, the stock has been hitting back-to-back upper circuits. From Rs 56.95 (April 12, 2024 closing price) to Rs 81.10 (April 16, 2024, closing price), the stock gained 42.40 per cent.

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The company's stock price rose due to the approval of an interim dividend of Rs 40 per share, which is a 400 per cent payout on the face value of Rs 10 per share. This decision follows a previous announcement in November 2023 regarding the divestment of the Malar Hospital business and the board's commitment to distribute surplus funds to shareholders.

The company considered various factors, including obligations under agreements and available reserves, before determining this dividend amount. Shareholders whose names appear in the company's register or as beneficial owners in depositories on the record date of April 23, 2024, will receive the dividend, which will be credited to their accounts or sent via dividend warrant within 30 days of the declaration.

According to the shareholding pattern, the promoters own 62.71 per cent, FIIs own 0.07 per cent and the public owns 37.22 per cent as of December 2023. The company has a market cap of Rs 152 crore.

Disclaimer: The article is for informational purposes only and not investment advice.