250% return in five years! Mid-cap stock to declare dividend, first-ever stock split soon

Vesuvius India Ltd., a prominent manufacturer of refractory products, has scheduled a board meeting today, February 26, 2025, to deliberate on key corporate actions, including a dividend recommendation, its December quarter results, and a potential stock split—the first in the company’s history.

Board Meeting Agenda

In a regulatory filing, Vesuvius India disclosed:

“Pursuant to Regulation 29(1) and other applicable regulations of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby give prior intimation that a meeting of the Board of Directors of the Company is scheduled to be held on Wednesday, February 26, 2025, inter-alia, to:

a) Consider and approve the Audited Financial Results of the Company for the Financial Year ended on December 31, 2024.

b) Consider and recommend dividend on Equity Shares of the Company.

c) Consider the proposal of split/sub-division of Equity Shares of the Company in such manner as may be determined by the Board of Directors, subject to approval of Members of the Company and such other regulatory approvals, as may be required.”

If approved, this would mark Vesuvius India’s first-ever stock split, a move generally aimed at enhancing stock liquidity and broadening retail participation. The company is expected to announce further details, including the record date and the revised face value of the shares. Notably, Vesuvius India has yet to issue any bonus shares to its shareholders. However, it has consistently rewarded investors with dividends, distributing ₹43 per share over the last five years.

Stock Performance

Vesuvius India’s stock has experienced significant volatility over the past year. It is currently down 48 percent from its all-time high of ₹6,000, recorded in May 2024. However, the stock has rebounded 34 percent from its 52-week low of ₹3,016.95, which it hit in March 2024.

Over the past year, the midcap stock has gained 20 percent. However, it has faced selling pressure in recent months, declining 5.6 percent in February after consecutive losses of 5.75 percent in January and 15.4 percent in December.

Meanwhile, in the long term, it has given multibagger returns, rallying 250 percent in 5 years.

Financial Performance

For the quarter ended September 2024, Vesuvius India reported a net profit of ₹68.46 crore, marking a 13.57 percent increase from ₹60.28 crore in the corresponding quarter of the previous year. The company’s revenue rose 8.15 percent year-on-year to ₹443.52 crore from ₹410.11 crore in the September 2023 quarter.

About Vesuvius India

Vesuvius India Limited is engaged in manufacturing and selling refractory products in India and abroad. The company’s product portfolio includes monoblock stoppers, ladle shrouds, tundish nozzles, slide gate plates, and sub-entry shrouds, among others. It also produces refractory castables, mortars, taphole clay, and precast shapes. Incorporated in 1991, the company is headquartered in Kolkata, India, and operates as a subsidiary of Vesuvius Group Limited, United Kingdom.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.