Stock Market Today: Multibagger small-cap stock Nava Limited announced a 600% dividend payout of ₹6 apiece along with its March quarter results on Friday, May 16. Against this backdrop, Nava shares gained, defying the weak stock market trend.

Nava announces 600% dividend

Nava Ltd informed the National Stock Exchange of India and the BSE about the dividend declaration today, wherein it said the Board of Directors has recommended a final dividend of 600% for the financial year ended March 2025.

The 600% dividend comes considering the dividend announced and the face value of Nava Ltd shares. Thus, Nava Ltd Board has declared a dividend of ₹6 per equity share of face value ₹1/- each for the recently concluded financial year.

The final dividend needs to be approved by the shareholders at the ensuing Annual General Meeting (AGM). If approved, it shall be paid within the statutory timeline prescribed under applicable laws, said Nava Ltd.

Significance of Dividend

One of the key factors that investors take into account when purchasing stocks is dividends. It serves as a gauge for the profits investors are getting from their stock, which they generally calculate through dividend yield.

A financial statistic called the dividend yield illustrates how much a business distributes in dividends annually in relation to the price of its stock. A dividend yield of three to five per cent or higher is regarded as good. But the state of the market also plays a role.

Multibagger small-cap stock Nava’s share price movement

Multibagger small-cap stock Nava share price opened at ₹472.45, slightly higher than its previous day’s closing price of ₹471. 90. Nava Share price thereafter gained further to ₹483.20 on a day when the Sensex corrected close to 0.5%.

The small-cap stock that used to trade below ₹130 levels has risen multifold, giving multibagger returns to investors.

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