Pharma Stock Sets Record Date For Final Dividend, LIC Held Stake In Q1
Strides Pharma Science Ltd, a small-cap pharmaceutical company, announced that it has set a record date for its final dividend payment. The company’s market capitalization stood at Rs 3,975.13 Cr during the previous closing session. Strides Pharma is known for developing and producing IP-driven specialized dosage formulations, and it is recognized as one of the largest manufacturers of soft gelatin capsules globally.
As per the company’s stock exchange filing, the Board of Directors had earlier recommended a dividend of Rs. 1.50 per equity share for FY23, at a rate of 15%. The record date for this dividend is slated for Friday, August 4, 2023. Once approved by shareholders in the forthcoming Annual General Meeting (AGM), the dividend will be paid within 30 days from the date of approval.
With a track record of consistent dividend declarations over the past five years, Strides Pharma Science has issued a total of 18 dividends since June 13, 2005, according to Trendlyne’s statistics.
During the quarter ending on March 31, 2023, the company’s loss significantly decreased from Rs 82 crore in the same period of FY22 to Rs 14 crore. Moreover, its quarterly sales revenue from operations witnessed a year-on-year growth of 14%, reaching Rs. 986 crore in Q4FY23, up from Rs. 866.02 crore in Q4FY22. In Q4FY23, the company’s EBITDA surged to Rs 160 crore, with an EBITDA margin of 16.1%.
On the Bombay Stock Exchange (BSE), Strides Pharma Science’s shares closed at Rs 440.20 apiece on Friday, representing a 0.57% increase from the previous close of Rs 437.70. The stock reached a 52-week high of Rs 486.80 on July 4, 2023, and a 52-week low of Rs 268.40 on March 21, 2023. In terms of shareholding pattern for Q1FY24, the company’s promoters held a stake of 28.08%, foreign institutional investors (FIIs) held 16.72%, domestic institutional investors (DIIs) held 19.60%, the government held 0.40%, and the general public held 35.22%. Notably, LIC, the insurance giant, held fully paid-up equity shares of 38,09,806 or 4.22% stake in the company.
In conclusion, Strides Pharma Science’s announcement of the record date for its final dividend payment reflects its commitment to rewarding shareholders. The company’s resilient performance in the last quarter, with a significant reduction in losses and growth in revenue, further strengthens its position in the pharmaceutical industry. With LIC’s stake in the company during Q1FY24, investor confidence remains high. Investors and market participants will eagerly await the dividend approval at the forthcoming AGM as the company continues its growth trajectory in the pharmaceutical sector.
