Rs 22.50/Dividend: Pharma Stock To Turn Ex-Dividend This Week For 1125%; Buy?

Mid-cap pharmaceutical company Glenmark Life Sciences had a market value of Rs 7,970.39 Cr in Friday's closing session. A pioneer in the development and production of high-quality, non-commoditized Active Pharmaceutical Ingredients (APIs) for chronic therapeutic areas is Glenmark Life Sciences. The company develops, manufactures, and provides premium Active Pharmaceutical Ingredients (APIs) to its partners across the world. This week, Glenmark Life Sciences is going to be a focus for investors looking for stocks with high dividend payouts. The shares will go ex-dividend this week on October 17 for a dividend payout of 1125 per cent.

Glenmark Life Sciences Dividend

"This is to inform you that the Board of Directors ("Board") of the Company has at its meeting held today i.e. October 09, 2023, inter-alia, declared Interim Equity Dividend for the financial year 2023-24 of Rs. 22.50/- per equity share of Rs. 2 each. As intimated vide our letter dated October 04, 2023, the record date for reckoning the list of shareholders who shall be entitled to receive the said interim dividend shall be Tuesday, October 17, 2023. The interim dividend will be paid to such shareholders on or after October 23, 2023," said Glenmark Life Sciences in a stock exchange filing.

Glenmark Life Sciences has announced an equity dividend of 1050.00% at a face value of Rs 2, or Rs 21 per share, for the financial year ended March 2023. The dividend yield at the current share price of Rs 650.50 is 3.23%. Glenmark Life Sciences Ltd. has issued 4 dividends since November 22, 2021, according to Trendlyne statistics.

Glenmark Life Sciences Financials

GLS reported good revenue from operations of Rs. 5,785 Mn in Q1FY24, representing a significant rise of 18.1% YoY. The company's EBITDA for the quarter climbed by 180 bps YoY to 33.7% of revenue, a growth of 24.8% YoY to Rs. 1,950 Mn. PAT for the quarter was Rs. 1,355 Mn, representing an impressive rise of 24.6% YoY. Additionally, GLS generated excellent free cash flow of Rs. 982 Mn during the quarter, resulting in Cash & Cash Equivalents of Rs. 3,820 Mn as of June 30th, 2023. The company is yet to declare its Q2FY24 results.

Glenmark Life Sciences Share Price Target

On Friday, the shares of Glenmark Life Sciences closed on the BSE at Rs 650.50 apiece up by 0.70% from the previous close of Rs 646. The scrip hit a 52-week-high of Rs 674.00 on (01/08/2023) and a 52-week-low of Rs 369.00 on (22/02/2023). Commenting on the share price outlook of Glenmark Life Sciences Mandar Bhojane - Technical Research Analyst at Choice Broking said "GLS is currently trading at Rs 635. On the weekly chart, the price is consolidating in a triangle pattern and trading in a sideways range between Rs 675 and Rs 600. If the price closes above Rs 675, it could target levels of Rs 689 and Rs 700 as immediate resistance. On the flip side, Rs 605 is an important support level. On the weekly chart, the range of Rs 590-Rs 615 acts as a strong demand zone. A "buy on dip" strategy will be the best way to accumulate the stock near the Rs 620 level."

The analyst went on to add that "Furthermore, GLS is currently trading above critical Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This reinforces its bullish momentum and suggests the potential for further upward price movement. The Relative Strength Index (RSI) is currently at 63.32 and trending upwards, indicating growing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has recently experienced a positive crossover from the oversold region. This combination of technical indicators suggests that GLS may have the potential to reach a target price of Rs 700 in the near term."

"To effectively manage risk, it is advisable to implement a stop-loss (SL) at Rs 600 to protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and prevailing market conditions, GLS appears to present an attractive buying opportunity for those aiming for a Rs 700 price target, provided that prudent risk management measures are in place," Mandar Bhojane claimed.

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.