2nd Interim Dividend of Rs. 6.50 Declared For FY24: Buy The FMCG Stock Ahead of Record Date?

At Wednesday's BSE closing session, Marico Ltd., a large-cap FMCG company, had a market worth of Rs 67,664.76 Cr. One of the top manufacturers of consumer goods in India for the international beauty and wellness markets is Marico. In India, its portfolio brands include Beardo, Just Herbs, True Elements, Plix, Parachute Advansed, Nihar Naturals, Revive, Set Wet, Livon, Saffola, FITTIFY, Hair & Care, and Parachute Advansed. With its headquarters based in Mumbai, the company has seven plants in India, which are situated in Puducherry, Perundurai, Jalgaon, Guwahati, Baddi, and Sanand. It is also present in more than 25 countries throughout emerging markets in Asia and Africa.

Marico Dividend

The Board of Directors considered and approved "Second Interim Equity Dividend for the financial year 2023-24 of Rs. 6.50/- per equity share of Re. 1 each. As intimated vide our letter dated February 19, 2024, the record date for reckoning the list of shareholders who shall be entitled to receive the said interim dividend shall be Wednesday, March 6, 2024. The Second Interim Equity Dividend will be paid to such shareholders on or before Thursday, March 28, 2024."

Marico News

In their meeting held on 27th February, the Board of Directors approved the appointment of Mr. Nikhil Khattau as a Non-Independent Non-Executive additional director w.e.f. April 1, 2024, liable to retire by rotation and subject to the approval of the shareholders. Pursuant to Companies Act, 2013, Mr. Khattau completes his second consecutive term as Independent Director w.e.f. end of day on March 31, 2024. Consequently, he will also cease to be the Lead Independent Director of the company, as per a regulatory filing.

The Board said, " that considering Mr. Nikhil Khattau's intrinsic understanding of the Company's business, values, culture and governance processes, deep insights into the Indian FMCG market and his immense contributions as a member of the Board and Committees over the years, his continued association as a Non-Independent Non-Executive Director will be in the best interest of the Company and will enable smooth assimilation of newer Board members, thereby contributing to sustained Board effectiveness."

Marico Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said MARICO is currently trading at Rs 522. The stock is exhibiting a sideways trend within the range of Rs 510 to Rs 545, with immediate support levels identified at Rs 500. A prudent strategy would be to consider buying on dips if a reversal is observed from these support levels.
The overall trend of the stock remains sideways, supported by a consistent pattern of equal highs and equal lows on the daily chart. Additionally, lower trading volumes indicate a clear indication of a sideways trend. If the price manages to close above the Rs 545 level, there is potential for touching its all-time high with a short-term target set at Rs 590 and above.

The Relative Strength Index (RSI) is currently trading flat at 44, suggesting that the stock is still in a sideways phase. The stock is presently trading below the 20-day exponential moving average (EMA), indicating a slight weakness.

Immediate hurdles on the upside are identified at Rs 545 and Rs 550. Investors are advised to hold their long positions with a trailing stop-loss (SL) set at Rs 500. Considering potential retracements in the stock price, it is recommended to contemplate buying on dips.

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.