Mukul Agrawal’s Metal and Mining Multibagger: Indian Metals & Ferro Alloys announces special dividend!

Despite the current modest losses in the Indian markets, certain sectors are causing quite the stir on D-Street today. Nifty Realty, Nifty Media, and Nifty Metal are among the standout performers, each logging gains of more than 1%. Amidst the green tide in the metal sector, one particular small-cap stock is turning heads, and it’s all thanks to ace investor Mukul Mahavir Agrawal.

A Hidden Gem: Multibagger Returns and Special Dividend

This under-the-radar gem, boasting a market cap of Rs 3,502 crore, has been on a meteoric rise, delivering multibagger returns that investors dream of. Over the past year, Indian Metals & Ferro Alloys Ltd has skyrocketed by an impressive 128%, while its three-year surge stands at nearly 170%. But that’s not all; in a move that’s caught the attention of investors far and wide, the company’s board has announced a special dividend of Rs 15 per equity share of Rs 10 each for the financial year ending March 31, 2024.

Mark Your Calendars: Record Date Revealed

For shareholders eager to get their hands on this special dividend, mark your calendars for Monday, April 8, 2024, as the record date. This is the date that determines who gets to partake in the dividend payout. And fear not, as the company plans to distribute the Special Dividend to eligible shareholders on or before Saturday, April 27, 2024.

A Shift Towards Ethanol Business

But that’s not the only exciting development brewing within Indian Metals & Ferro Alloys Ltd  . Recently, the board of Indian Metals & Ferro Alloys Ltd gave the green light for an investment in the ethanol business and its allied by-products, with an estimated investment amount of Rs 200 crore. This strategic move signals a forward-looking approach and opens up new avenues for growth and profitability.

Impressive Financial Performance

Delving into the financials, Indian Metals & Ferro Alloys Ltd  has reported a remarkable performance in Q3FY24. Sales surged by 10% from Rs 614 crore to Rs 675 crore, while profits saw a staggering ten-fold increase from Rs 10 crore to Rs 108 crore. This phenomenal growth can be attributed to higher realization and lower costs. Sales realization per unit increased from Rs 93,000 to Rs 103,000, while costs decreased from Rs 80,000 to Rs 72,000, further bolstering the bottom line.

Mukul Mahavir Agrawal’s Stamp of Approval

Renowned investor Mukul Mahavir Agrawal, known for his keen eye for lucrative investment opportunities, holds a significant stake in this company. As of the quarter ended December 2023, Agrawal commands a 1.44% stake, equivalent to 7,78,900 shares. Moreover, mutual funds have also taken notice, increasing their holdings from 0.03% to 0.04% in the December 2023 quarter. 

Final Thoughts

As investors eagerly await the special dividend payout, all eyes are on this hidden gem in the metal and mining sector, poised for further growth and success in the times ahead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.