With a market capitalization of ₹ 1,823 crores, Novartis India is a small-cap company. It is primarily engaged in the business of wholesale pharmaceuticals and medical goods and it imports various medicines to India from different sources across the globe.
The company recently declared its result for the March quarter and for the financial year 2022-23. It reported a profit of 25.02 crores in the March quarter of FY23 (Q4FY23), against a loss of 23.37 crores in the corresponding quarter last year (Q4FY22). Its revenue came in at 76.13 crores in Q4FY23, against ₹ 98.32 in Q4FY22.
For the entire year (FY23), it reported a profit of ₹ 103.36 crores against a loss of ₹ 3.72 crores in the previous financial year (FY22). Its revenue declined to ₹ 378.74 crores in FY23, against ₹ 399.87 crores in FY22.
Novartis India’s board has recommended a final dividend of ₹ 10 and a special dividend of ₹ 37.50, taking the total dividend to ₹ 47.50 per equity share of the face value of ₹ 5. In other words, it is equal to 950% of the face value of its shares. The dividend, if approved by the shareholders will be paid on or after August 02, 2023.
The company has consistently been paying a final dividend of ₹ 10 per year per share since 2013 and has a dividend yield of 1.35%. However, with the special dividend that it has declared this year, its dividend yield will rise to 6.37%. Its shares were trading at ₹ 745.00 apiece at 11:57 AM on Wednesday.
Novartis has a return on equity of 14.09% and an ideal debt-to-equity ratio of 0.03. Its shares were trading at a price-to-earnings ratio (P/E) of 17.64, which is significantly lower than the industry P/E of 27.17, indicating that might be undervalued as compared to its peers.
Written By Simran Bafna
The post Pharma Stock announces a dividend of ₹ 47.50 per share; Do you own? appeared first on Trade Brains.
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