Multibagger pharma stock declares Rs 9.25 dividend, 1:2 stock split

Multibagger pharma stock declares Rs 9.25 dividend, 1:2 stock split

The board of JB Chemicals and Pharmaceuticals has recommended a final dividend of Rs 9.25 (462.50 %) per equity share of face value of Rs 2 for the year 2022-23.

The dividend, if declared, will be dispatched on or after 10 days from the date of annual general meeting (AGM).

Shares of JB Chemicals will trade ex-dividend on the day of record date or a day before. When a company goes ex-dividend on a particular date, its stock does not carry the value of the next dividend payment. An ex-dividend date also dictates which shareholders are eligible to receive the dividend payment.

Further, the board has also approved to split its existing equity shares in the proportion of 1:2.

“The board considered and approved sub-division of existing equity shares of face value Rs 2 each of the company to equity shares of face value Re 1 each of the company, subject to regulatory approvals and the approval of the shareholder,” the company said in a filing.

Stock split is usually done to increase the liquidity of the stock in the market. On the ex-split date, investors who are holding the stock until the record date will receive the new shares in demat accounts and the stock price will be adjusted according to the split ratio.

During the March quarter, the company recorded revenue of Rs 762 crore in the fourth quarter as against Rs 625 crore in Q4FY22, registering a growth of 22%. Operating EBITDA increased by 21% to Rs 181 crore as compared to Rs 149 crore. Profit after tax, meanwhile, rose 4% to Rs 88 crore.Domestic formulations business clocked revenue of Rs 380 crore, recording a growth of 29% for the quarter and was at Rs 1,640 crore for FY23, with a growth of 38%. Excluding acquired brands, domestic business grew in double-digits for the quarter and mid-teens for the year

International business performed well and grew at 16% to Rs 382 crore in the quarter and 22% to Rs 1509 crore for the financial year. Shares of JB Chemicals and Pharma closed 1.49% lower at Rs 1,923 on NSE. The stock has given multibagger returns to investors in the last three years, nearly tripling investors’ wealth.

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