Rs 42.50/Share Dividend: Mid-Cap Stock To Trade Ex-Dividend Soon For 425% Dividend

HEG Ltd is a mid-cap company in the capital goods industry. HEG Ltd, a top firm of the LNJ Bhilwara group, is now India's largest maker of graphite electrodes. It boasts one of the world's largest integrated Graphite Electrode operations, processing complex UHP (Ultra High Power) Electrodes. Over 70% of the output of the business is exported to more than 30 nations throughout the world. The company has declared a final dividend of Rs 42.50 for FY23 and the stock is going to be in focus this week as it is going to trade ex-dividend on 24th August 2023.

HEG Dividend

"The Board of Directors have recommended a Final Dividend on Equity Shares at the rate of Rs. 42.50/- per Equity Share of the face value of Rs. 10 /- each, for the financial year 2022-23 subject to the approval of the Shareholders at the ensuing Annual General Meeting (AGM) of the Company. The dividend will be paid/ dispatched within 30 days from the date of the Ammal General Meeting," said HEG in a stock exchange filing.

"Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, the Register of Members and Share Transfer Books of the Company will remain closed from Friday, 25th August, 2023 to Thursday, 31st August, 2023 (both days inclusive) for the purpose of Annual General Meeting and for payment of final dividend for financial year 2022-23, if declared at the AGM. Accordingly, the date for the purpose of determining entitlement of the members of the Company to receive Dividend is Thursday, 24th August, 2023," said HEG In a regulatory filing.

HEG Financials

On a consolidated basis, the company recorded revenue from operations of Rs 671.43 Cr in Q1FY24 compared to Rs 721.95 Cr in Q1FY23. Its net income stood at Rs 697.55 Cr during June 2023 quarter as against Rs 743.28 Cr in June 2022 quarter. The company's net expenses reached Rs 567.46 Cr during the quarter under review compared to Rs 562.96 Cr in the same quarter of FY23. The net profit of HEG stood at Rs 139.12 Cr in Q1FY24 compared to Rs 159 Cr in Q1FY23. Its EPS slipped to Rs 36.05 in June 2023 quarter as against Rs 41.20 in the same quarter of FY23.

HEG Share Price Target

"Currently trading at 1172, HEG demonstrates a robust uptrend, evident in its consistent formation of higher lows over the past three months. Bolstering its upward trajectory, the Relative Strength Index (RSI) stands at 60 and exhibits an upward trend, suggesting a favorable momentum shift. An important technical juncture presents itself at 1800, with a minor resistance that, once surmounted on the back of substantial trading volumes, could catalyze a rapid ascension," said Ameya Ranadive, Sr Equity and Derivatives Analyst · Choice International Ltd.

"Furthermore, HEG's resilience is underscored by its position above key moving averages, including the 20, 50, 100, and 200 Exponential Moving Averages (EMAs). This confluence of technical indicators lends strong credence to its upward movement. Strategic accumulation is advisable up to the 1700 mark, aligning with its demonstrated strength. Looking ahead, prudent targets lie in the range of 1990 to 2035 for the short to mid-term horizon," stated Ameya Ranadive.

"HEG emerges as an attractive prospect for investors. The alignment of favorable technical indicators, coupled with its consistent upward momentum and strong performance against key resistance levels, underscores the potential for further appreciation," said Ameya Ranadive.

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