180% Dividend: Bet On The Chemical Stock Ahead of Record Date On 19th March?

As of Friday's closing session, Sudarshan Chemical Industries Ltd.'s market cap, a small-cap chemical firm, was Rs 3,973.30 Cr. With more than 70 years of expertise, Sudarshan Chemical Industries Limited is an international producer of color and effect pigments, specializing in solvent dyes and pigments for coatings, plastics, printing, digital printing, cosmetics, and specific uses. The 19th of March has been set as the record date for the interim dividend that the business has declared, which is Rs 3.60 per share. The shares closed 0.38% higher at Rs 573.95 each on the BSE on Friday, ahead of trading ex-dividend. The stock reached a 52-week-high of Rs 613.00 on (27/02/2024) and a 52-week-low of Rs 363.15 on (16/03/2023).

Sudarshan Chemical Industries Dividend

"This is to inform you that the Board of Directors at its meeting held today i.e. on Wednesday, 6th March, 2024, has approved and declared an Interim Dividend of Rs. 3.60/- (Three Rupees and Sixty Paise only) (i.e. 180%) per Equity Share of Rs. 2/- each fully paid up, for the Financial Year 2023-24. The Interim Dividend shall be paid on or before Saturday, 30th March, 2024, to the Equity Shareholders of the Company, whose names appear in the Register of Members of the Company or in the records of the Depositories as Beneficial Owners of the Equity Shares as on Tuesday, 19th March, 2024, which is the Record Date fixed for the purpose," said Sudarshan Chemical Industries in a stock exchange filing.

Sudarshan Chemical Industries Financials

The company reported a net sales of Rs 509.69 crore in the December 2023 quarter up 9.55% from Rs. 465.27 crore in the December 2022 quarter. Its net profit stood at Rs. 18.80 crore in Q3FY24 up 1286.21% from Rs. 1.36 crore in Q3FY23. Its EBITDA reached Rs. 68.85 crore in the reporting quarter up 71.57% from Rs. 40.13 crore in the same quarter of the previous fiscal.

Sudarshan Chemical Industries Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said SUDARSCHEM, currently trading at Rs 571.85, has recently broken out above Rs 550 and formed a rounding bottom pattern on the daily chart. The immediate resistance is near the Rs 610 level, and the current price is exhibiting strong bullish momentum, expected to continue towards the Rs 700 level. On the flip side, there is strong support near Rs 500.

Moreover, SUDARSCHEM is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, indicating robust bullish momentum and suggesting potential for further upward price movement. The Relative Strength Index (RSI) is presently at 51.89, showing an upward trajectory and indicating increasing buying momentum.

Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. These technical indicators collectively suggest that SUDARSCHEM may have the potential to reach a target price of Rs 700 in the near term.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 500 to safeguard the investment in the event of an unexpected market turn. A prudent strategy would be to consider buying on dips at levels of Rs 550 and Rs 530.

Overall, considering the technical analysis and current market conditions, SUDARSCHEM presents a promising buying opportunity for those aiming for a Rs 700 price target, provided that prudent risk management measures are in place.

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.