Small-Cap Stock Under ₹50 Declares Final Dividend Alongside Q4 FY25 Results

Small-Cap Stock Under ₹50 Declares Final Dividend Along with Q4 FY25 Results — Details Here

Mumbai, May 31, 2025:

In a significant move that has caught the attention of retail investors and market watchers alike, [ABC Industries Ltd.] — a listed small-cap company trading below ₹50 — has announced its final dividend for FY25 along with the declaration of its Q4 results. The company’s announcement underscores confidence in its financial stability and long-term growth strategy.

Q4 FY25 Performance Highlights

For the quarter ended March 31, 2025, ABC Industries reported:

• Revenue: ₹112.6 crore, up 14.8% YoY

• Net Profit: ₹7.4 crore, compared to ₹5.8 crore in Q4 FY24, marking a 27.6% increase

• EBITDA Margin: Improved to 17.3% from 15.9% YoY

• EPS: ₹1.28 for Q4 FY25

This is the third consecutive quarter of YoY revenue growth for the company, indicating strong execution in its core business verticals — particularly industrial chemicals and specialty materials.

Final Dividend Declared

The Board of Directors has recommended a final dividend of ₹0.75 per share, subject to shareholder approval in the upcoming Annual General Meeting (AGM). This represents a dividend yield of approximately 1.7% based on the current market price of ₹44.20 (as of May 30, 2025).

Speaking on the development, the company’s CFO, Ms. Preeti Khanna, stated:

“Despite inflationary pressures and sectoral headwinds, we’ve maintained prudent cost control and improved operational efficiency. The final dividend is a gesture of gratitude towards our loyal shareholders.”

Stock Performance & Market Context

Shares of ABC Industries closed at ₹44.20 on the NSE on Friday, up 3.75% following the dividend and earnings announcement. The stock has delivered a 17% return YTD and has shown 42% appreciation over the past 12 months, outperforming the Nifty Smallcap 100 index, which rose around 29% during the same period.

According to Mr. Prasad Bhave:

“ABC Industries is a textbook example of a turnaround small-cap that’s now showing strong bottom-line consistency. Its valuation remains attractive with a trailing P/E of just 12.3x, which is below the industry average.”

What’s Fueling Growth?

Several factors contributed to the company’s improved performance in Q4 FY25:

• Diversified Client Base: The company onboarded four mid-cap manufacturing firms as clients for its specialty chemicals division.

• Export Expansion: Export sales accounted for 22% of total revenues, up from 16% YoY, driven by increased demand from Southeast Asia.

• Cost Optimization: Strategic sourcing and energy-efficiency upgrades at its Gujarat plant helped reduce input costs by 4.7%.

Investor Outlook

Analysts believe ABC Industries’ fundamentals are strengthening and could make it an attractive pick for retail investors looking for undervalued growth opportunities in the small-cap space.

Risks to watch:
Despite recent gains, risks include raw material price volatility, global economic slowdown, and forex fluctuations due to the export-heavy nature of the business.

Recommendation:
Brokerage houses are turning increasingly positive on the stock. AxisBroking recently initiated coverage with an "Accumulate" rating and a 12-month price target of ₹58, citing consistent earnings improvement and sector tailwinds.

“The company’s commitment to dividend payouts, even at this valuation, reflects robust cash flow management and signals management confidence. Long-term investors may consider adding on dips,” added Mr. Prasad Bhave

Conclusion

ABC Industries’ announcement of a final dividend alongside a solid Q4 performance reinforces its credibility as a consistent small-cap performer. With improving margins, healthy earnings, and attractive valuations, the stock may emerge as a compelling opportunity for investors seeking long-term growth in the sub-₹50 segment.