President of India's small-cap stock surpasses Coal India in dividend yield; stock trades at single-digit PE - Check, do you hold?

Despite its small-cap status, with a market capitalization of Rs 1,482 crore, it has demonstrated robust financial performance, reporting a net profit of

In a resounding display of strength, the markets extended their rebound for the fourth consecutive session, posting gains of over half a percent. Following a robust gap-up start, the Nifty charted a steady ascent, reclaiming the significant psychological threshold of 22000. Across the board, sectors rallied in tandem, with notable performances seen in auto, realty, and pharma, propelling the market breadth towards the advancing side. Notably, sustained buying activity in the midcap and Small-Cap segments contributed to this bullish sentiment.

A notable surge in buying interest, particularly in Large-Cap stocks, propelled the Nifty back above recent consolidation levels, marking its highest-ever weekly closing. Furthermore, the Nifty's consistent closure above the 21-day Exponential Moving Average (EMA) over the past few days underscores a prevailing positive trend in the market.

Amidst this buoyant market environment, attention is drawn to an intriguing stock that has outshone even the crown jewel of dividend yields among PSU stocks – Coal India. Over the past twelve months, Coal India has declared an equity dividend totaling Rs 19.25 per share, translating to a dividend yield of 4.01 per cent based on its current share price of Rs 480.

Enter Balmer Lawrie Investment Ltd., a standout performer in the President of India’s portfolio. With a commendably low single-digit Price-to-Earnings (PE) ratio, this stock has declared an impressive equity dividend amounting to Rs 33 per share over the same period, boasting a dividend yield close to 5 per cent.

Despite its small-cap status, with a market capitalization of Rs 1,482 crore, Balmer Lawrie Investment Ltd. has demonstrated robust financial performance, reporting a net profit of Rs 68 crore in the quarter ending December 2023. Notably, the stock has delivered an impressive return of 85.25 per cent over the past year, further enhancing its appeal to investors.

Given its high dividend yield and the significant stake held by the President of India, amounting to 59.67 per cent of the company, Balmer Lawrie Investment Ltd. warrants close attention.

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