1,342 per cent dividend yield in this penny stock under Rs 5; scrip hits 5 per cent upper circuit!

In the current financial year, the company declared bonus shares in the ratio of 4:1 and a final dividend of Rs 77.50 per share for its equity shareholders as of the record date.

On Friday, the benchmark indices ended the trading session in the green. BSE Sensex Index was up by 0.74 per cent at 65,721.25. On the BSE, 2,196 stocks advanced, 1,384 declined, and 140 were unchanged out of 3,720 stocks traded.

A penny stock under Rs 5 was one of the Top Gainers on the BSE, as the market was overall in the green. The stock was locked in the upper circuit, indicating that it had reached its maximum daily limit.

The stock is Taparia Tools Ltd. The company is engaged in the production and distribution of manual tools. Additionally, the company's manufacturing capabilities encompass advanced forge shop, machine shop, heat treatment, polishing, nickel chrome plating, and more.

The company has also delivered good profit growth over the past 5 years, with a CAGR of 37.2 per cent and a debt-free. This means that the company's profits are growing rapidly, which is a sign of a healthy business. In addition, the company has a good ROE track record, with a 3-year ROE of 27.6 per cent. This means that the company is using its equity to generate a lot of profit, which is a sign of efficiency. Finally, the company has maintained a healthy dividend payout of 48.6 per cent. This means that the company is returning a significant portion of its profits to shareholders, which is a sign of shareholder value creation.

Additionally in the current financial year, the company declared bonus shares in the ratio of 4:1 and a final dividend of Rs 77.50 per share for its equity shareholders as of the record date. The ex-bonus date was July 11, 2023 and the ex-dividend date was June 26, 2023.

According to the financials, Taparia Tools has a market cap of Rs 3.51 crore. The company reported positive numbers in its Quarterly Results and annual results. The net sales increased by 14.37 per cent to Rs 764 crore and net profit increased by 10.77 per cent to Rs 72 crore in FY23 over FY22.

The stock is providing a good dividend yield of 1,342 per cent and EPS of Rs 47.60. Additionally, the stock is trading at 0.01 times its book value of Rs 178. Investors should keep an eye on this penny stock Taparia Tools.

Disclaimer: The article is for informational purposes only and not investment advice.