Rs 325/Share Dividend: Pharma Stock To Trade Ex-Dividend On Friday For 3250% Dividend Payout

A large-cap corporation that operates in the pharmaceutical industry is Abbott India. Abbott India Limited is a publicly traded subsidiary of Abbott Laboratories with its headquarters in Mumbai. Abbott India Limited is a division of Abbott's international pharmaceutical business in India and one of the country's fastest-growing pharmaceutical firms. For FY23, the company has declared a whopping dividend of 3250% and in order to determine the eligibility of the shareholders for the purpose of the same, Friday, July 21, 2023 has been fixed as the record. Due to the T+1 settlement mechanism of the company, the stock is going to trade ex-dividend on the same date.

Abbott India FY23 Dividend

"We hereby inform you that the Board of Directors at its Meeting held today i.e., May 19, 2023, recommended payment of final dividend of Rs. 180/- and special dividend of Rs. 145/- per equity share of Rs 10/- each for the year ended March 31, 2023, subject to approval of the Shareholders at the ensuing Seventy-ninth Annual General Meeting of the Company scheduled to be held on August 9, 2023," said Abbott India in a stock exchange filing.

"We hereby inform you that the Company has fixed Friday, July 21, 2023 as the Record Date for determining entitlement of Members to Final and Special Dividends for the financial year ended March 31, 2023. The aforesaid Dividends, if approved by the shareholders at the forthcoming Seventy Ninth Annual General Meeting of the Company, will be paid on or after Wednesday, August 16, 2023," informed Abbott India to stock exchanges while announcing the record date.

Abbott India has announced an equity dividend of 3250.00% at a face value of Rs 10, or Rs 325 per share, for the financial year ended March 2023. The dividend yield at the current share price of Rs 23419.10 is 1.38%. The company has a solid track record of dividend declarations during the past five years. According to Trendlyne's statistics, Abbott India Ltd. has declared 29 dividends since May 21, 2001.

Abbott India Financials

In Q4FY23, the firm recorded a net income of Rs. 1,392.72 crore, increasing 9.15% YoY from Rs. 1,276.07 crore in Q4FY22. In the quarter that ended in March 2023, the company's revenue from operations was Rs 1,343.08 Cr, up from Rs 1,254.75 Cr in the quarter that ended in March 2022. The company's total expenses grew by 10.21% YoY to Rs 1,084.31 crore in Q4FY23 from Rs 983.77 crore in the same quarter of FY22. Abbott India's net profit jumped by 9.46% YoY to Rs 231.42 Cr during the quarter ended March 2023 from Rs 211.41 Cr posted in Q4FY22. Abbott India's Q4 FY23 EPS was Rs 108.90 as opposed to Rs 99.49 in the same quarter of FY22. Abbott India is yet to declare its Q1FY24 results.

Abbott India Share Price Target

Ameya Ranadive, Equity Research Analyst at Choice Broking said promising accumulation zone presents opportunity for investors.
"Abbott India, currently trading at 23225, has exhibited noteworthy performance by sustaining crucial Moving Averages (MA) of 20-50-100-200 EMA. While the stock possesses minor support around 22800 to 23000, a break below this level could potentially lead to a correction. Additionally, technical indicators such as RSI divergence and DMI strength index suggest some caution.

However, the stock's ability to remain above the Bollinger Band mean and the formation of Elliott Wave wave 5 around 23800, accompanied by a correction wave at 0.38% and trend line support at 22400, provide a positive outlook. Consequently, Abbott India seems to be in a favorable accumulation zone between 23225 and 22400, presenting an attractive investment opportunity," said Ameya Ranadive.

"Abbott India has shown resilience by maintaining crucial Moving Averages, including the 20-50-100-200 EMA. This demonstrates the stock's ability to sustain its upward trend and signifies a healthy underlying strength. Furthermore, a minor support level in the range of 22800 to 23000 has been identified, which acts as a crucial barrier to monitor. A breach below this support level may indicate a potential correction in the stock's price. The Relative Strength Index (RSI), currently at 57, has displayed a divergence pattern on the daily chart. This divergence suggests a negative factor and indicates a possible reversal in the stock's momentum. Investors should be cautious of this development," Ameya Ranadive further stated.

"The Directional Movement Index (DMI), a strength indicator, is currently at 21, indicating a loss of momentum. This decline in strength further supports the notion of a potential correction or consolidation phase. Elliott Wave theory suggests that wave 5 has formed around the 23800 level. Wave 5 is typically the final wave in an impulsive move and often leads to a correction. The correction wave, which aligns with trend line support, is at 0.38% and corresponds to approximately 22400. This level should be closely monitored as it provides an additional support zone for the stock," said Ameya Ranadive.

"Considering the technical indicators and wave analysis, Abbott India appears to be in a promising accumulation zone between 23225 and 22400. The stock's ability to hold above the Bollinger Band mean is considered a positive sign in the short term. This indicates that the stock is trading above the average price and suggests potential upward momentum," commented Ameya Ranadive on the outlook of Abbott India.

Commenting on the share price target of Abbott India, Ameya Ranadive, Equity Research Analyst at Choice Broking said "Based on the analysis, an accumulation zone between 23225 and 22400 provides an excellent opportunity for investors looking to enter the market. With the aforementioned technical factors and accumulation zone, Abbott India presents an attractive investment opportunity. Considering the bullish sentiment, a target can be set at 25000-25150."

Kush Gupta, Director, SKG Assets & Holdings Private Limited said "Abbott India is in the news again with its ex-date approaching. The company is known to reward investors every year with dividends of approx 1.5%, this along with capital appreciation makes a good case for investment in Abbott. Last year Abbott distributed a dividend of Rs325/- per share and it's expected to do the same this year. Abbott has performed well with a YoY growth of 23% in FY23, their underlying base business comprising of medical devices, established pharmaceuticals and Nutritions has been a major support to the top line.

Further, the company is focused on fulfilling ESG norms by upgrading 75 primary health centres (PHCs) to Health and Wellness Centres (HWCs) across nine states in India. The HWC program, supported by an Abbott grant of about Rs 200 million (U.S.$2.4 million), will serve over 2.5 million people from under-resourced communities every year. Further collaborations with government are also on the cards to improve quality healthcare. Abbott India can be an interesting inclusion from pharma space in your portfolio.

Nirav Karkera, Head of Research, Fisdom said " Abbott India's business has been growing consistently and at a reassuring pace. Despite headwinds through intensified competition and pricing pressure, the company has been able to navigate growth through focus on line extensions and foray in to new therapies. The firm also intends to capitalise on the opportunities offered in the generics segment in India. Input costs have been exerting pressure on gross margins, however he same can be expected to subside going ahead as raw material inflation eases to a meaningful extent.

Going ahead we expect the company to maintain a strong handle on expenditures, both capital and operating, while pursuing growth through relatively higher sales and distribution-related spending. The company is expected to grow sustainably on the back of healthy cash flows, strong balance sheet, improving product mix and foray into promising segments. ABBOTINDIA is trading consistently, on the weekly charts, in a higher high, higher bottom formation and recently witnessed a bullish triangle pattern breakout which indicates the bullish nature of the stock. The momentum oscillator RSI (14) on the weekly chart has recorded a low near 38 levels and post that oscillator continues to move in a higher bottom formation and reading above 60 levels with a bullish crossover on the cards. One can seek to build exposure at the CMP or at dips near 22,750 levels with immediate support at 22,000 levels and resistance at 24,500 - 25,000 levels."

V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT) said, "Pharmaceutical sector is considered one of the safe, stable and low volatile sectors as compared to many others such as financial banking media etc. This sector has out performed in past quarters, and there are some stocks that outl performed and now available at some discount. Here we are talking Abbot india, It is one of the leading generic medicine manufacturers in India.

Right now this stock is trading near to its 20 days exponential moving average (EMA) which generally works as a support in this script. Current market price is nearly 23380, those who are already holding this trade they can keep their trailing stop loss at 22650 and keep the target expectations of 23850/24000/24200/24500/24700 and 25000. Worth to notice here is 25000 will be a psychological range and there is a possibility that this could see a pullback at this level but if the price successfully breaks and sustains above 25000 range, we can see a target of 30000 also. Of course this is going to take nearly 6 months to 1.5 years."

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.