401 per cent profit growth in this multibagger company; Board announced bonus shares and dividend!

The company has been maintaining a healthy dividend pay-out of 40.30 per cent.  

Kansai Nerolac Paints informed that the Board of Directors of the company has announced a bonus in the ratio 1:2 and a dividend of 270 per cent or Rs 2.70 per share for a face value of Rs 1 per equity share to the eligible shareholders. The bonus issue of shares, subject to the approval of the shareholders, will be out of the capitalisation of securities premium and general reserve.   

Talking about the financials, the company reported amazing numbers in its Quarterly Results and annual results. The net sales rose by 13 per cent and net profit skyrocketed by 401.56 per cent in Q4FY23 over Q4FY22. In FY23, net sales rose by 19 per cent and net profit rose by 37 per cent over FY22.  

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Kansai Nerolac Paints Ltd is principally engaged in the manufacturing of paints and is a market leader in industrial coatings. The company has been maintaining a healthy dividend pay-out of 40.30 per cent.  

On Thursday, shares of Kansai Nerolac Paints zoomed 1.36 per cent to Rs 410.50 per share with an intraday high of Rs 414.40 per share and an intraday low of Rs 405.40. The shares of the company saw a spurt in volume by more than 1.04 times on BSE.   

From Rs 117.52 per share to Rs 414.40 per share, this company gave multibagger returns of 252.62 per cent in just 5 years. Investors should keep an eye on this mid-cap stock under the radar.