This smallcap lubricant stock, already a multibagger, turns ex-dividend on November 21

Veedol Corporation, a smallcap star in the lubricant industry, has cemented its reputation as a multibagger stock with robust performance and consistent shareholder rewards. The company is set to turn ex-dividend on November 21, 2024, after declaring an interim dividend of Rs 20 per share. This brings its total dividend payout for the year to an impressive Rs 52 per share, showcasing its financial strength and commitment to rewarding investors.  

A multibagger with a proven track record  

With a market capitalization of Rs 3,500 crore, Veedol Corporation stands out in the competitive lubricant sector. Its financial metrics indicate a solid foundation:  
- P/E Ratio:12.5x, signalling attractive valuations compared to industry peers  
- Debt-to-Equity Ratio: Low, highlighting prudent financial management  
- Return on Equity (ROE): Exceeding 20 per cent, showcasing efficient capital utilization  

The company’s focus on maintaining a strong balance sheet and delivering consistent profitability has translated into multibagger returns for its investors over time.  

Recent performance and technical outlook  

In the past six months, Veedol’s stock has gained over 15 per cent, driven by its resilient performance and sectoral tailwinds. On November 20, it closed at Rs 1,200, down marginally by 0.5 per cent due to profit booking. Analysts predict that the stock might remain range-bound post its ex-dividend date but see room for further appreciation, given its strong fundamentals and robust cash flow growth.  

Should you invest in Veedol Corporation?  

For long-term investors, Veedol Corporation presents a compelling case with its sound financials, consistent growth, and attractive dividend yield. Existing shareholders can continue to benefit from its shareholder-friendly policies and market stability.  

New investors, however, might consider entering after a potential price dip following the ex-dividend date. With its proven track record, strong operating cash flow, and low debt, Veedol Corporation is poised to remain a leader in the smallcap lubricant sector and a reliable wealth creator.