Rs 47.50/Share Dividend: Small Cap Pharma Stock To Trade Ex-Dividend In 2 Days For 950% Dividend Payout

Small-cap firm Novartis India Ltd operates in the pharmaceutical industry. Novartis is a renowned worldwide pharmaceutical company with its headquarters in Switzerland. Since 1947, Novartis has had a major presence in India. The company announced a massive 950% dividend payout for FY23, and the shares will begin trading ex-dividend on July 20, 2023.Since the company follows the T+1 settlement mechanism the record date is also falling on the same day hence the stock is going to trade ex-dividend in 2 days.

The Board has recommended a final dividend of Rs 10.00 per equity share of the face value of Rs 5 each and a one-time special dividend of Rs 37.50 per equity share of the face value of Rs 5 each, on the occasion of the company's 75th Anniversary, hence the total dividend amounts to Rs 47.50 per equity share of the face value of 5 each for FY23.

"The Register of Members and Share Transfer books shall be closed from Friday, July 21, 2023 to Friday, July 28, 2023, both days inclusive, for determining the eligibility of shareholders for payment of dividend, if approved by the shareholders at the AGM. Accordingly, the dividend, if approved by the shareholders, will be paid on or after August 02, 2023," said Novartis India in a stock exchange filing.

Novartis India has announced an equity dividend of 950.00% at a face value of Rs 5, or Rs 47.5 per share, for the financial year ended March 2023. The dividend yield at the current share price of Rs 887.40 is 5.37%. The company has a solid track record of dividend declarations during the past five years. According to Trendlyne's statistics, Novartis India Ltd. has issued 24 dividends since October 3, 2001.

"Novartis India is a smallcap healthcare (pharma) company. Recently it has announced a Special Dividend/Share ₹ 37.50 & Cash Dividend ₹10 /Share final Ex- Date Jul 20, 2023 for the same. RSI shows (Relative strength Index) strength in price trading at 82 (daily) and 76 (weekly) time frame. It's looking over-bought as of now. It has delivered 29% ROI in YoY. For any fresh longs, one should wait for a pullback to get the benefits of the "buy on dips" strategy.

Those who already hold it can keep it with trailing stop loss at 750 with target expectation (Only if it sustains above 890) 950/1000/1050/1100/1150/1200. If you are planning to enter it then consider it a little high buy and have a view of averaging (820 to 770) range too in case the price takes a pullback as we have discussed above. Worth to notice here it is trading almost 5% above its 20 days EMA. All technical aspects are suggesting that it is a high buy as of now however average volumes have increased which is significant and it may work as a triggered point for many investors," says V.L.A. Ambala (SEBI Registered Research Analyst at Stock Market Today (SMT).

On Tuesday, the shares of Novartis India opened on the BSE at Rs 881.85 apiece. The stock made a 52-week-high of Rs 890.50 on (17/07/2023) and a 52-week-low of Rs 554.00 on (21/03/2023).

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