Dwarikesh Sugar Industries, one of India’s leading sugar producers, recently made headlines when it declared a 200% dividend amidst a lower stake by Foreign Institutional Investors (FIIs) in Q3. The question on everyone’s mind now is: what does this mean for investors?
First, let’s take a closer look at Dwarikesh Sugar Industries’ performance. The company has shown steady growth in recent years, with a consistent increase in revenue and profits. Its latest dividend announcement is a testament to its financial stability and the confidence it has in its future growth prospects.
However, the decrease in FII stake may be a cause for concern for some investors. FIIs are a significant source of investment for Indian companies, and a decrease in their stake may signal a lack of confidence in the company’s future growth prospects. It’s worth noting, though, that FII stake is just one factor to consider when evaluating a company’s performance.
In fact, Dwarikesh Sugar Industries has a strong domestic investor base, with several institutional investors and retail investors holding significant stakes in the company. This indicates that there is still plenty of confidence in the company’s future.
Moreover, the sugar industry in India is known for its cyclicality, with prices fluctuating based on supply and demand dynamics. While this can make it a volatile industry to invest in, it also means that there are opportunities for investors to capitalize on the cyclical nature of the industry.
Overall, Dwarikesh Sugar Industries’ dividend announcement and FII stake decrease should be seen as a mixed bag for investors. While it’s always important to consider all relevant factors when making investment decisions, it’s worth keeping in mind that the company has shown strong financial performance in recent years and has a solid domestic investor base. As always, investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions.
Dwarikesh Sugar Industries, a small-cap company in the fast-moving consumer goods (FMCG) industry, has a market value of Rs. 1,571.75 crore. A market leader in the Indian sugar industry and a diversified industrial company with a focus on producing the finest sugar grains is Dwarikesh Sugar Industries Ltd. The corporation has declared a 200% dividend, and the board has established a record date to determine who the eligible shareholders are.
“You are informed that in accordance with Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time, the Board of Directors has fixed Friday, March 31, 2023 as the record date for the purpose of payment 200% i.e. of interim dividend 2/- per equity share 1/- each for the financial year 2022-23 as announced by the Board of Directors in its meeting held on 20th March, 2023. In a stock exchange filing on Monday, Dwarikesh Sugar Industries said, the interim dividend will be paid within the time prescribed under the law.
For the fiscal year that ends in March 2022, Dwarikesh Sugar Industries has declared an equity dividend of 200.00% on face value 1, or 2 per share. At the present share price of 83.85, it yields a dividend yield of 2.38%. According to Trendline statistics, Dwarikesh Sugar Industries Limited has declared 9 dividends since October 31, 2005. Also, throughout the past year, the company has declared an equity dividend of 2.00 per share. At the present share price of 83.85, it yields a dividend yield of 2.38%.
The company had a net income of 391.73 cr during Q3FY23 as opposed to 602.32 cr during Q3FY22. In comparison to the Rs. 557.32 crore recorded for the quarter ending December 2021, the company’s net expense for the quarter ending December 2022 was Rs. 370.71 crore. According to Dwarikesh Sugar Industries, its net profit was 10.52 crore compared to the 28.88 crore reported in the December quarter of FY22, and its EBIT was 21.02 crore during Q3FY23 as opposed to Rs. 45.00 crore during the same quarter last year. The EPS for Dwarikesh Sugar Industries increased from 0.56 in Q3 FY23 to 1.53 in Q3 FY22.
Dwarikesh Sugar Industries’ stock was recently seen trading at 83.85 per level on the NSE. In the third quarter of FY23, the firm reported that 42.09% of its shares were held by promoters, 5.66% by FIIs, 3.27% by DIIs, 0.13% by the government, and 48.84% by the general public. FII/FPI holding reduced from 7.01% in Sep 2022 quarter to 5.66% in Dec 2022 quarter, mutual funds holding 3.25 is steady at% in Q3FY23, and institutional investors’ holding has decreased from 10.39% in Q2FY23 quarter to 9.06% in Q3FY23 quarter, according to Trendline data.
