Multibagger Alert: Agarwal Industrial Corp Declares 1:5 Stock Split After 2000% Rally – Dividend Stocks on the Rise

Agarwal Industrial Corporation, a small-cap company, has seen its shares soar from approximately ₹60 to ₹1,240 over the past four years, achieving a remarkable 2,000% increase. To make its shares more affordable, the company announced a 1:5 stock split. This means each share with a face value of ₹10 will be divided into five shares, each valued at ₹2.

Ex-Dividend Date and Dividend Details

The company’s shares will trade ex-dividend on September 6, 2024. This date is crucial for determining which shareholders are eligible to receive the final dividend of ₹3 per share for the financial year 2023-24. The board of directors has already approved the stock split, in compliance with the Companies Act 2013 and SEBI regulations.

Strong Q1FY25 Financial Performance

In the first quarter of FY25, Agarwal Industrial Corporation reported significant growth in its financial performance. Revenue increased by 12.69% year-on-year, reaching ₹709.24 crore. The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) saw a substantial rise of 46.53%, amounting to ₹61.71 crore.

Additionally, the profit after tax (PAT) jumped by 41.44% to ₹39 crore. The company also reported a 26.60% growth in volume, marking its highest-ever first-quarter volume of 170,478.36 MT. A ₹3 per share dividend for FY23-24 has been approved by the board.

Company Profile and Operations

Agarwal Industrial Corporation is a leading player in India’s bitumen industry, providing essential infrastructure support for transport and logistics, including bulk bitumen and LPG. The company operates seven manufacturing facilities, offers a portfolio of more than 20 products, and manages a fleet of 10 vessels with a total capacity of about 1,02,049 MT.

Union Budget 2023-24

The Union Budget 2023-24 has laid a strong foundation for infrastructure development in India. The total proposed expenditure is ₹45,03,097 crore, with a significant allocation of ₹2,72,000 crore to the Ministry of Road Transport and Highways.

This marks a substantial increase compared to the previous year, highlighting the government’s commitment to infrastructure growth.