The earnings season has officially begun on D-Street, with numerous companies revealing their financial results for the quarter and the year ending March 31, 2025. Among the key highlights are the dividend announcements from companies renowned for their consistent payouts, which are capturing the attention of investors eager for reliable returns.

A Small-Cap Gem: Swaraj Engines Ltd

One noteworthy player in this landscape is Swaraj Engines Ltd (SEL), a small-cap company celebrated for its steady dividend history. With a commendable dividend yield of 2.30%, SEL has been returning value to its shareholders every year since 2008.

Strong Q4 Results

In its recent Q4 FY25 results, SEL reported a remarkable 29% year-over-year increase in net profits, totaling Rs 45.4 crore. Revenue also experienced a significant boost, climbing 29.4% to reach Rs 454 crore. The earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to Rs 61.9 crore, marking a 28.7% YoY growth.

SEL has announced its highest-ever dividend to date, amounting to Rs 104.50 per share for the financial year ending March 31, 2025. This dividend declaration is particularly notable because Mahindra and Mahindra (M&M) holds a substantial 52.12% stake in SEL, translating to a payout of around Rs 66.16 crore for M&M.

Key Dates and Future Plans

Mark your calendars: Friday, June 27, 2025, is set as the record date for determining eligible shareholders for the dividend, pending approval at the upcoming Annual General Meeting (AGM) scheduled for July 15, 2025.

In addition to its dividend announcement, SEL is embarking on an ambitious engine capacity expansion initiative. The company plans to increase its production capabilities from 195,000 units to 240,000 units per year to cater to the rising demand in the market. This expansion will require an investment of Rs 220 crore, which will be entirely financed through SEL’s internal resources and surplus funds.

Impressive Stock Performance

SEL is not just a dividend contender; it’s also a multibagger stock that has delivered impressive returns over the years. Over the past three years, SEL’s stock has skyrocketed by 190.16%. In the last year alone, it has surged by 70.78%, and it has gained 40.11% year-to-date.

Investors looking for small-cap stocks with strong fundamentals and a reliable dividend history may find SEL an appealing option as it continues to expand its operations and reward its shareholders.

Conclusion

As the earnings season unfolds, Swaraj Engines Ltd stands out as a solid investment opportunity within the small-cap sector. With its commitment to dividends, impressive financial performance, and plans for future growth, SEL is poised to maintain momentum in the coming quarters.

Disclaimer: This article is intended for informational purposes only and should not be construed as investment advice. Always consult with a financial advisor before making investment decisions.