50–90% Dividends: On February 16, two multibagger railway stocks, BEML and IRCON, become ex-dividend; shares drop by 2-4%
As of right now, BEML shares have increased by 119% in a year.
For the fiscal year 2023–2024, this Miniratna railway stock has announced an interim dividend of Rs 5 per share, with a face value of Rs 10. The dividend distribution is equal to 50% of paid-up share capital, expressed as a percentage. The record date for the payment of the aforementioned interim dividend to eligible equity shareholders was set by the firm at February 16.
Therefore, on February 16, BEML shares likewise became ex-dividend.
BEML reported a 1% increase in sales for the third quarter of 2024, from Rs 1036 crore to Rs 1047 crore. In contrast, the company recorded a 1% gain in revenue year over year (YoY), rising from Rs 2510 cr to Rs 2541 cr. Additionally, the company’s staff expenses decreased by 2% YoY during the quarter as a result of persistent efforts to lower labor expenditures. Compared to the same nine-month period last year, the current year’s EBITDA margins have increased by 34%, from Rs 83 crore to Rs 110 crore. In the nine months leading up to December 2023, the profit after taxes (PAT) increased from Rs. 0.56 crore to Rs. 26 crore, while the PAT margin increased from 0.02% to 1.02%.
BEML engages in the rail and metro, mining and construction, and defense and aerospace sectors. Its cutting-edge production facilities are situated in Bangalore, Kolar Gold Fields (KGF), Mysore, and Palakkad. An excellent R&D infrastructure is in place at BEML. Additionally, BEML offers a countrywide network of services and sales.
IRCON International Dividend: IRCON, a Navratna company, has declared an interim dividend of Rs. 1.80 per equity share on the face value of Rs. 2/-each (90% of the paid-up equity share capital) for the financial year 2023–2024. The shares will become ex-dividend in February. The business intends to start paying dividends on Tuesday, February 27, 2024. The record deadline for IRCON to determine whether stockholders are qualified for the interim dividend is February 16.
IRCON shares saw a sharp decline on its ex-dividend day, plunging 3.62% to an intraday low of Rs 223.45 a share. The market capitalization of the shares, which is now valued at Rs 21,241.55 crore, is 2.6% lower at Rs 225.85 a share.
Even with the most recent setbacks, IRCON is still a multibagger, with a 300.53% annual return as of right now.
IRCON’s income from operations in Q3 FY24 climbed to Rs. 2,884.2 crore from Rs. 2,346.5 crore in Q3 FY23, a 22.9% rise. EBITDA increased by 63.2% to Rs. 378.1 crore in Q3FY23 from Rs. 231.7 crore. The EBITDA margin for the company was 12.6%. In the meanwhile, profit after taxes climbed from Rs. 190 crore in Q3FY23 to Rs. 244.7 crore in Q3FY24, a 28.8% rise.
Railways and highways are IRCON’s primary areas of expertise, and the Ministry of Railways is IRCON’s reporting agency. The company has completed projects in the areas of building roads, highways, commercial, industrial, and residential buildings and complexes, airport runways and hangars, metro and mass rapid transit systems, electrification, tunnelling, signal and telecommunication, and leasing of locos. The organization has completed over 128 projects in 25 different countries and 401 projects in different Indian states.
