PSU Balmer Lawrie Announces Record Dividend and 1:10 Stock Split

The Indian equity market is reeling under selling pressure with NSE Nifty 50 and BSE Sensex trading down by over 0.50% on Wednesday. The sell-off was led by banking stocks and Reliance Industries. Meanwhile, the broader market indices were relatively outperforming the frontline indices with Nifty Midcap 100 down by 0.09% and Smallcap 100 up by +0.18%.

Considering the outperformance of broader market indices one stock from small cap segment, which is a public sector undertaking (PSU), Balmer Lawrie Investment Ltd is trading higher by 3.31% on Wednesday.

Rs 38 Dividend Announced

The Board of Directors of the company has recommended a dividend of Rs 38 per equity share for FY24. The company has declared 22 dividends since September 19, 2003, but the recent dividend recommended by the board stands as the highest ever recommended by the company. The last time a similar dividend was declared was in 2021.  

Check: Dividend Stocks

Stock Split Announced

Public Sector Undertaking Balmer Lawrie Investment announced that its board has recommended a stock split in the ratio of 1:10. This means that one share with a face value of Rs 10 would be split into 10 shares having face value of Re 1 each.

Check: Stock Splits

No Bonus Shares

In a press release by the company, it has mentioned that the Board of Directors after considering various factors, the Board of Directors decided not to recommend the issue of Bonus shares.

Q4FY24 Performance Standalone

In Q4FY24, Balmer Lawrie Investment Ltd reported revenue of Rs 2.71 crore witnessing a growth of 11.07% on a YoY basis. Net profit of Rs 1.81 crore in Q4FY24 as against Rs 1.59 crore in Q4FY23, resulting in a growth of 13.83% on a YoY basis.

Stock Performance

Balmer Lawrie Investment Ltd has delivered multibagger returns of 117.31% in the last 12 months, and on a YTD basis the stock is up by 76%. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.