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This Rakesh Jhunjhunwala-backed stock rises over 2% on nod to interim dividend

This Rakesh Jhunjhunwala-backed stock rises over 2% on nod to interim dividend

Rekha Jhunjhunwala, wife of the ace investor, is the third-largest shareholder in the company, owning a 14.42 per cent stake at the end of December quarter.

Board of Metro Brands approved an interim dividend of Rs 1.50 per equity share on its face value of Rs 5 each for FY22. Board of Metro Brands approved an interim dividend of Rs 1.50 per equity share on its face value of Rs 5 each for FY22.

Shares of Rakesh Jhunjhunwala-backed footwear retail chain Metro Brands rose over 2 per cent in an otherwise weak market today after board of the firm approved an interim dividend of Rs 1.50 per equity share on its face value of Rs 5 each for FY22. The stock rose 2.34 per cent to Rs 530 against the previous close of Rs 517.90 on BSE.

Rekha Jhunjhunwala, wife of the ace investor, is the third-largest shareholder in the company, owning a 14.42 per cent stake at the end of December quarter.

The share also fell to an intraday low of Rs 514.80 today. Metro Brands stock has lost 5% in the last five days.

The midcap stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has gained 13.06 per cent in 2022. Total 4,810 shares changed hands amounting to a turnover of Rs 24.97 lakh on BSE. Market cap of the firm rose to Rs 14,031 crore on BSE.

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The record date has been fixed as March 19 for ascertaining the eligibility of shareholders for payment of interim dividends.

In the third quarter of the current fiscal, Profit rose 62.55 per cent to Rs 100.15 crore for the third quarter ended December 2021 against a net profit of Rs 61.61 crore during the October-December quarter of the previous fiscal.

Sales climbed 62.23 per cent to Rs 476.05 crore during the quarter under review against Rs 293.45 crore in the corresponding period of the previous fiscal.

Total expenses climbed 47.26 per cent to Rs 362.59 crore in Q3 FY 2021-22, compared to Rs 246.21 crore in the year-ago period. Metro Brands CEO Nissan Joseph said it was the best quarterly revenue, EBITDA and PAT in the history of the company.

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"We also are encouraged by the growth we have witnessed across the multiple Tiers of cities that we operate in and the continued growth of our e-commerce and omnichannel business," he added. As of December 31, 2021, Metro Brands operated 629 stores across 140 cities in India.

Meanwhile, Sensex and Nifty were trading in the red in the afternoon session as Russia's attack on Ukraine entered the 11th day. Sensex lost 383 points to 52,459 and Nifty fell 142 points to 15,720.  The Indian equity market has fallen for the fifth consecutive session amid a spike in crude oil prices.