Smruthi Organics Sweetens the Deal: ₹1.5 Per Share Dividend Served Up!

Image Source: Zee Business

Smruthi Organics Limited, a prominent producer of active pharmaceutical ingredients (APIs) and intermediates, declared a final dividend of ₹1.5 per equity share for the fiscal year 2024-25. This action reflects the company's continued commitment to rewarding its shareholders amid a tough business landscape.

Dividend Announcement

The Board of Directors declared a final dividend of ₹1.5 per equity share (15% on face value of ₹10) for the year FY 2024-25.
Dividend shall be paid on 1,14,46,290 equity shares, depicting the company's consistent dividend policy.
Ex-dividend date is fixed on September 6, 2024.

Dividend Track Record

Smruthi Organics has a consistent history of healthy dividend payout, as depicted by consistent distributions year after year.
Earlier dividends were ₹2.00 per share in 2023 and ₹3.00 per share in 2022.

Financial Snapshot

The current market price of the company is ₹113.05 per share, with a market capitalization of around ₹129 crore.
Dividend yield is around 1.32% on current price.
Even with a marginal sales growth rate and negligible return on equity in the past few years, the company remains committed to shareholder returns.

Operational Insights

Smruthi Organics is involved in the pharma business and provides APIs to local and foreign markets
The company has recorded a steady dividend payout ratio of about 45.5% over the past few years.

Why This Is Important for Shareholders

Qualifying shareholders at the record date (September 6, 2024) will be paid the announced dividend.

The dividend payout indicates confidence from the management about the firm's financial solidity as well as its commitment towards offering value to shareholders despite challenges faced in business.

Sources: Rediff Money, Moneycontrol, INDmoney, The Economic Times, India Infoline