Double Dhamaka! 1:5 stock split & 36% dividend announced: Multibagger steel stock with 1,000 per cent in 5 years!

Steelcast Limited (SCL) informed that its board has proposed a stock split, pending shareholder approval at today's 54th Annual General Meeting, where each equity share with a face value of Rs 5 will be subdivided into five equity shares of Re 1 face value. If approved, August 29, 2025, will be the record date for this split. Additionally, the board declared a first interim dividend for FY 2025-26 of Rs 1.80 per equity share (36 per cent), with August 8, 2025, fixed as the record date for this dividend, which will be paid by August 30, 2025.

Steelcast Limited (SCL) is a leading Indian manufacturer of steel and alloy steel castings, supplying a diverse range of Original Equipment Manufacturers (OEMs) across various industrial sectors. Utilising both bake and shell moulding processes, SCL produces a wide array of casting products, including carbon steel, low alloy steel, high alloy steel and manganese steel, as well as specialised wear and abrasion-resistant steel castings. Notably, the company is one of the few in the casting industry capable of manufacturing over 300 different parts through sand and shell moulding, with individual casting weights ranging from 2.5 kg to 2,500 kg.

The company has a market cap of over Rs 2,200 crore and has delivered good profit growth of 56 per cent CAGR over the last 5 years with a healthy dividend payout of 23 per cent. In Q1FY26, the net sales increased by 39 per cent to Rs 107 crore and net profit increased by 54 per cent to Rs 20 crore compared to Q1FY25.

The shares of the company have a PE of 30x, an ROE of 24 per cent and an ROCE of 33 per cent. The stock is up by 93 per cent from its 52-week low of Rs 612.95 per share and has given multibagger returns of over 1,000 per cent in 5 years.  

Disclaimer: The article is for informational purposes only and not investment advice.