Multibase India Declares ₹53 Dividend: Should You Invest Before the Record Date? - Read Now

Multibase India, a small-cap multibagger stock, has grabbed headlines after announcing an interim dividend of ₹53 per share for FY2024-25. This historic payout, the highest in the company's history, will make investors take a decision on whether to purchase the stock ahead of the record date falling on November 27.

Here's the detailed break up of the dividend announcement, the performance of the stock, and expert inputs on whether it's a bright idea to invest in Multibase India now:.

₹53 Dividend Declaration: A Milestone

Multibase India announced an interim dividend of ₹53 per share, translating to 530% of the face value of ₹10. The declaration was done through an exchange filing on November 13.

With a record date of November 27, it means that the shareholders need to own the stock until this date for the dividend payout. The dividend amount will be disbursed on or before December 12, 2024, after tax.

This is a significant declaration for the company after stating smaller size dividends at ₹3 in August 2024, ₹2 in September 2023, and Re 1 in September 2022.

The declared dividend comes on the back of a strong financial performance for the quarter ending September 2024. The company posted:

• 113.43% in terms of net profit at ₹4.29 crore against ₹2.01 crore in the same quarter last year
• 13.28% in revenue terms at ₹18.42 crore, up from ₹16.26 crore in the quarter ended September 2023.

These tremendous returns are due to the company's excellent operational efficiency and the niche market domination in thermoplastic elastomers and silicone-based products.

Stock Performance: A Multibagger Stock

Multibase India has been a multibagger stock for long-term investors. Some of the key highlights are:

• A gain of 109% in stock price in the last one year.
• Year-to-date  return of 102.3%.
• The stock went up by 79% in November 2024 after the declaration of the dividend.
• The stock's 52-week high was ₹472 on November 19, and the low was at ₹215.15 in November last year.
• These trends indicate that the stock is highly on a roll, with analysts advising ₹400 as a key support level.

Should you buy before the record date?

According to market experts, one should proceed with caution while investing in Multibase India, which goes ex-date next.
According to Head of Research of Lakshmishree Investment and Securities, Anshul Jain,

• The stock has recently broken out of its long-held range of ₹180–₹300.
• Trailing stop-loss can be kept at ₹400 to reduce risks.
• The "buy on dips" candidate is expected to reach a medium-to-long-term target of ₹750.

However, experts say that one needs to be cautious with the risk management measures as the stock price has made a good upsurge recently.

Why Multibase India Stands Out

MultiBase India Limited: Founded in 1991 as Synergy Polymers Limited, it is a leading player in the specialty chemicals space. Its innovative product range includes thermoplastic elastomers and silicone-based solutions for niche market segments with significant growth potential.
 
As detailed above, the company maintains an excellent record of dividend payment history and has delivered outstanding financial performance.
 
Risks and Considerations
While the performance and dividend announcement of the stock are pretty good, the potential investor should consider the following:

• Recent Price Surge: The stock may rally rapidly, and there could be short-term profit-booking from the recent price surge.
• Market Volatility: Small-cap stocks are always volatile and may react sharply to broader market trends.
• Dividend Taxation: Dividend payout is subject to applicable taxes as it reduces the net returns.