This M&M-backed small-cap multibagger declares highest-ever dividend of Rs 104.5 per share; M&M's payout to exceed Rs 66 crore
In the last three years alone, it has surged by impressive 190.16 per cent.
The earning season has kicked off on D-Street, with several companies announcing their financial results for quarterly and year ended March 31, 2025. Alongside the financial results, dividend announcements by consistent dividend-paying companies are catching investors’ attention.
In this article, we focus on one such Small-Cap company known for its consistent dividends. It offers a dividend yield of 2.30 per cent. Interestingly, the company has declared dividends every year since 2008.
The company is Swaraj Engines Ltd (SEL). SEL is primarily manufacturing diesel engines for “Swaraj” tractors produced by Mahindra and Mahindra (M&M). It supplies diesel engines ranging from 20 HP to 65 HP. Since starting operations in 1989-90, SEL has supplied 1.59 million engines for Swaraj Tractors.
Recently, the company had announced its Q4FY25 results and declared its highest-ever dividend of Rs 104.50 per share for the financial year ended March 31, 2025.
On a consolidated basis, SEL reported a 29 per cent YoY increase in net profits to Rs 45.4 crore for Q4FY25. Revenue also rose 29.4 per cent YoY to Rs 454 crore. EBITDA stood at Rs 61.9 crore, up 28.7 per cent YoY.
Here’s the most interesting part – the company is backed by Mahindra and Mahindra (M&M), which holds 52.12 per cent stake in SEL, translating to 63.31 lakh shares. With this bumper dividend, M&M is set to receive a payout of approximately Rs 66.16 crore.
Friday, June 27, 2025 is fixed as the record date to determine eligible shareholders for the dividend, if approved in the company. The Annual General Meeting (AGM) is scheduled for Tuesday, July 15, 2025.
In addition to the dividend announcement, the company also approved an engine capacity expansion plan. Capacity will be increased from the existing 1,95,000 units to 2,40,000 units annually to meet growing demand in the coming years. The estimated investment for this expansion is Rs 220 crore, which will be funded entirely through internal accruals and surplus funds.
SEL, a small-cap stock, has delivered multibagger returns over the years. In the last three years alone, it has surged by an impressive 190.16 per cent. In the past year, the stock has gained 70.78 per cent, and on a year-to-date basis, it is up by 40.11 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.