Rs 11/Share Dividend: Large Cap Specialty Chemical Stock To Turn Ex-Dividend On Thursday For 1100% Payout

Large-cap firm Pidilite Industries Ltd operates in the specialty chemical industry. The company is a well-known brand among household and corporate names for its wide range of products, including adhesives, sealants, waterproofing solutions, construction chemicals, arts and crafts, industrial resins, and polymers. Pidilite Industries Limited has been a leader in consumer and speciality chemicals in India since its founding in 1959. The firm has declared an 1100% final dividend payment for FY23, and the stock is going to turn ex-dividend on 27 July 2023.

Pidilite Industries Dividend

"The Board of Directors have recommended a Dividend of Rs 11/- (Rupees Eleven Only) per equity share of Re.1/- each for the financial year ended 31st March, 2023. Subject to the approval of the shareholders at the 54th Annual General Meeting, the dividend will be paid to the shareholders within a period of 30 days from the date of the 54th Annual General Meeting," said Pidilite Industries in a stock exchange filing.

Pidilite Industries has fixed 27 July 2023 as the record date for the purpose of final dividend and due to the T+1 settlement mechanism of the company the ex-dividend date is only on the same date.

The company has a solid track record of dividend declarations during the past five years. Pidilite Industries Ltd. has issued 24 dividends since July 9, 2001, according to data from Trendlyne.

Pidilite Industries Financials

The firm recorded a net profit of Rs 283 crore for the fourth quarter that ended March 31, 2023, which is a rise of 11.2 per cent year on year (YoY) over the same quarter of FY22's net profit of Rs 254.4 crore. Total revenue for the March quarter was Rs 2,689.3 crore, up 7.3% from Rs 2,507.1 crore in Q4FY22. EBITDA jumped by 14.5 percent, from Rs 401.1 crore in Q4Y22 to Rs 459.2 crore in Q4FY23. In comparison to the same quarter in FY22, the EBITDA margin in Q4 FY23 was 17.1% as opposed to 16%. According to the firm, its consolidated net income jumped by 7.70% YoY to Rs 2712.07 Cr during Q4FY23 from Rs 2518.21 Cr during Q4FY22.

The company is yet to declare its Q1FY24 results. "Pursuant to Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 we wish to inform that a meeting of the Board of Directors of the Company will be held on Thursday, 10th August, 2023, inter alia, to consider and take on record the unaudited financial results for the first quarter ended 30th June, 2023," said Pidilite Industries in a stock exchange filing.

Pidilite Industries Share Price

On Tuesday, the shares of Pidilite Industries opened on the BSE at Rs 2640.05 apiece and while writing this copy the stock was trading with a downside gap of 2.04% at 2599.60. The stock made a 52-week-high of Rs 2,916.85 on (15/09/2022) and a 52-week-low of Rs 2,250.85 on (24/02/2023). During Q1FY24, the company recorded promoter shareholding of 69.91%, FIIs stake of 11.34%, DIIs stake of 7.92% and public stake of 10.82%.

Pidilite Industries Share Price Target

Om Mehra, Equity Technical Analyst · Choice Equity Broking Private Limited said the stock is exhibiting a HH-HL formation in the larger time frame, indicating a potential uptrend. However, in the past month, the stock has underperformed compared to the broader market, with a negative return of -0.89%, while the Sensex has delivered a positive return of 5.40%.

Despite the recent lackluster performance, there are some positive signs for the stock. Notably, the delivery volume has surged by an impressive 43.6%, pointing to increased buying interest among investors. The stock price has been moving in a narrow range between 2550 and 2750, indicating that the market is currently in a phase of consolidation and accumulation.

At the moment, the RSI indicator is trading at a level of 52. Considering the current market dynamics and the stock's recent performance, investors should consider a prudent approach. Booking small profits over a period of time could be a wise strategy, especially given the uncertainty around the stock's ability to break above the 2750 level.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.