Home FinanceThe biggest dividend ever announced by this M&M-backed small-cap multibagger is Rs 104.5 per share.

The biggest dividend ever announced by this M&M-backed small-cap multibagger is Rs 104.5 per share.

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The earning season has kicked off on D-Street, with several companies announcing their financial results for quarterly and year ended March 31, 2025. Alongside the financial results, dividend announcements by consistent dividend-paying companies are catching investors’ attention.

One such small-cap company that is well-known for paying dividends on a regular basis is the subject of this article. It provides a 2.30 percent dividend yield. It is interesting to note that since 2008, the business has announced dividends annually.

The business is called Swaraj Engines Ltd. (SEL). The main product of SEL is diesel engines for Mahindra and Mahindra’s (M&M) “Swaraj” tractors. It offers diesel engines with 20–65 horsepower. Swaraj Tractors have received 1.59 million engines from SEL since the company began operations in 1989–1990.

For the fiscal year that concluded on March 31, 2025, the firm recently revealed its Q4FY25 results and announced its highest-ever dividend of Rs 104.50 per share.

For the fourth quarter of FY25, SEL recorded net earnings of Rs 45.4 crore, a YoY increase of 29%. Additionally, revenue increased 29.4% year over year to Rs 454 crore. EBITDA increased 28.7% year over year at Rs 61.9 crore.

The most intriguing aspect is that Mahindra and Mahindra (M&M), which owns 52.12% of SEL, or 63.31 lakh shares, is supporting the business. M&M is expected to get a payout of almost Rs 66.16 crore with this huge dividend.

Friday, June 27, 2025 is fixed as the record date to determine eligible shareholders for the dividend, if approved in the company. The Annual General Meeting (AGM) is scheduled for Tuesday, July 15, 2025.

The business authorized a proposal to increase engine capacity in addition to announcing the dividend. To accommodate the rising demand in the upcoming years, capacity will be raised from the current 1,95,000 units to 2,40,000 units per year. The full Rs 220 crore planned investment for this development will come from internal accruals and surplus funds.

Over the years, the small-cap stock SEL has produced multibagger gains. It has increased by an astounding 190.16 percent in just the last three years. The stock has increased 70.78 percent over the last year and 40.11 percent so far this year.

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