Rs 26-2nd Interim Dividend, One Time Special Dividend of Rs 10: May 23-Record Date, To Be Paid On June 7; Buy?

One of the largest FMCG firms by market capitalization, Colgate-Palmolive (India), with a closing market value of Rs 72,715 Cr on Wednesday. The Colgate brand is used by the corporation to manufacture and sell toothpastes, toothbrushes, toothpowder, oil pulling products, and mouthwashes. The Palmolive brand is used to promote a specific range of products for personal care. A second interim dividend of Rs 26 per share has been disclosed by the Board of Directors, which has put the stock in focus.

Colgate-Palmolive (India) Dividend

The Board of Directors considered and approved "Declaration of Second Interim Dividend of Rs. 26/- (Rupees Twenty Six Only) per equity share of Re.1/- each for the Financial Year 2023-24 and One-time Special Interim Dividend of Rs. 10/- each (Rupees Ten Only) per equity share of Re.1/- each on account of an excellent performance of the Company during the Financial Year 2023-24. The said dividends will be paid on and from June 07, 2024 to those shareholders whose names appear in the Register of Members of the Company as on the Record date i.e. May 23, 2024," said the FMCG giant in a regulatory filing.

"The Company has declared a Second Interim dividend of Rs. 26/- per share and one time special interim dividend of Rs 10 /- per share aggregating to Rs. 97,915 Lakhs on May 14, 2024 for FY 2023-24 which will be paid on and from June 7, 2024. The Board of Directors at its meeting held on October 26, 2023 had earlier declared the First Interim Dividend of Rs. 22/- per share aggregating to Rs. 59,837 Lakhs for the FY 2023-24 which was paid on and from November 21, 2023," Colgate-Palmolive (India) further informed the stock exchanges.

"The Board declared a Second Interim Dividend of Rs. 26/- per share of Re 1 each (face value). In addition the Board has also declared a one time special interim dividend of Rs 10 /- per share in view of the excellent performance of the Company for the Financial Year 2023-24. The dividend payout to the shareholders will be Rs. 979.2 Crore and will be paid on or after June 7, 2024 to those shareholders whose names are on the Register of Members of the Company as on May 23, 2024. The Total Dividend would be Rs. 58/- per share for the year 2023-24," the company in a stock exchange filing.

Colgate-Palmolive (India) Financials

Colgate Palmolive India Ltd. announced that its net profit for the fourth quarter, which ended on March 31, 2024, jumped by 20.1% YoY to Rs 379.8 crore compared to a net profit of Rs 316.2 crore for the same period in the previous fiscal, according to a regulatory filing from the company. Compared to the same time in the previous fiscal year, when revenue from operations was Rs 1,350.6 crore, the company's revenue from operations climbed by 10.3% to Rs 1,490 crore in the quarter under review. In the fourth quarter of FY24, EBITDA climbed 17.7% to Rs 532 crore from Rs 452 crore in the corresponding quarter of FY23. During the reporting quarter, the EBITDA margin was 35.7%, compared to 33.5% in Q4FY23.

Colgate-Palmolive (India) Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "The stock is presently trading at 2780 levels and has found substantial support around 2700 levels. The recent robust bounce from this support suggests a bullish stance for COLPAL. The potential for further upward movement, potentially reaching new all-time highs, is underlined by the stock's resilience at key support levels. The Relative Strength Index (RSI) indicator is a testament to the stock's strength, comfortably trading at 51.39 levels. Additionally, COLPAL is trading above all significant moving averages, reinforcing its positive technical position."

"A breakthrough above the resistance at 2850 could catalyze a strong upward movement, approaching the all-time high levels of 2960 and beyond. This analysis suggests a favorable outlook for COLPAL, supported by technical indicators pointing towards potential bullish momentum in the upcoming sessions. Based on the provided technical analysis, we advise purchasing COLPAL at the current market price of 2780 for a short to medium-term outlook. A stop loss should be set at 2700 to mitigate risk, targeting a potential rise to 2960 and 3030 levels," the analyst further commented.

Disclaimer

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