Voltamp Transformers , small cap company is frozen today morning at the 20% upper circuit at Rs.500.25. The surge today has been phenomenal, opening at Rs.423 and then hitting this 20%. Its 52-week high stands at Rs.547.40.Volumes are huge, up from around 1200 shares to over 45,000 shares today.

The stock has hit the roof after the com[any declared a very generous, unexpected dividend. The Board has recommended dividend of 100% or Rs.10 per share (face value at Rs.10) and onetime special dividend of 50% or Rs.5 per shares to commemorate successful completion of 50 years in the transformer business for the financial year ended March 31, 2013.

But for this generosity, the numbers for Q4FY13 have not been too enthusing. The company reported a 10% (YoY) fall in net sales at Rs.175 core and yet the net profit surged 35% at Rs.15 crore. This is purely on account of ‘income from other sources” which came in at Rs.6.5 crore, up from Rs.3 crore in Q4FY12.