Car and General Plc share price has hit a downward slide to KSh 54.25 when trading ended at the Nairobi Securities Exchange (NSE) this Wednesday as investors took profits from a price rally that has lasted for more than two trading weeks.
Given the firm’s positive performance, its directors recommended a dividend of KSh 128 Million compared to KSh 32 Million in 2020, equivalent to KSh 3.20 per share compared to KSh 0.80 in 2020.
The firm is also issuing bonus shares of one fully paid-up bonus share of KSh 5 for every one ordinary share of par value of KSh 5.00( Bonus ratio 1:1)
“The retreat indicates that people are taking profit following the sharp price increase. It also shows that the market has now priced in the news on the dividend and bonus,” said Genghis Capital analyst Melodie Ndanu.
The firm posted a Net Profit of KSh 887.2 Million in 2021 from KSh 274.1 Million in 2020
Car and General closed on Tuesday, January 25, 2022 at KSh 60.25 per share on the Nairobi Securities Exchange (NSE), recording a 9.7% drop from its previous closing price of KSh 66.75 .
The counter began this year with a share price of KSh33.95 and has since gained 77.5% on that price valuation, ranking Car and General first on the NSE in terms of year-to-date performance.
Available figures also indicate that Car and General share hit its peak of KSh 72.75 before it begun the downslide to KSh 60.25 per share when trading ended at the NSE this Tuesday.
While Car& General counter was attractive due to the generous dividend payout and the bumber bonus share issue, its unresolved tax dispute with Kenya Revenue Authority(KRA) could have forced investors to dump the stock and flee for the hills.
The listed firm’s annual report and financial statements for the year ended 31st September 2021 shows that its 10 ten shareholders are led by Fincom Limited with a 32.50% stake followed by Betrin Limited( 15.93%); Monyaka Investments Limited( 12.51%), Primaco Limited( 9.10%); Paul Wanderi Ndungu ( 8%); Vapa Limited( 4.59%); Rakesh Prakash Gadani ( 2.13%); Nairobi Commercial Continental Limited (1.35%); Chandan Jethanand Gidoomal ( 1.10%) and Investment& Mortgage Nominees Limited A/C 028950( 1.05%).