300% Payout: FMCG Giant Patanjali Foods Declares Rs 6/Share Interim Dividend; Buy To Be Eligible?

With a market valuation of Rs 48,785 Cr, Patanjali Foods Ltd. is a large-cap company in the FMCG industry. The firm is one of the top producers and marketers of healthy versions of edible oils and a pioneer of soya foods in India, ranking among the top FMCG companies. It is among the largest palm plantation enterprises in India as well. The firm owns 22 manufacturing plants, which add up to a daily capacity of over 11,000 tonnes for refining, 11,000 tonnes for crushing seeds, and 10,000 tonnes for packaging.

Patanjali Foods FY24 Dividend

"Pursuant to Regulation 43 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) declared an Interim Dividend of Rs. 6/- (i.e. 300%) per equity share on 36,19,18,554 (net of 76,299 treasury shares) of Rs. 2/- each for the Financial Year 2023-24. The payment of the same will be made on or before 11th April, 2024. Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, including amendments thereunder the Board of Directors of the Company has fixed Thursday, 21st March, 2024 as the "Record Date" to ascertain the name of the eligible shareholders / beneficial owners of the equity shares of the Company to whom the aforesaid interim dividend shall be payable," said Patanjali Foods in a stock exchange filing on March 13, 2024.

Patanjali Foods News

The Board of Directors of the company, at its meeting held on Wednesday, 13th March, 2024 has also approved premature redemption of 1,79,22,540 - 0.0001% cumulative redeemable non-convertible preference shares of the company out of the profits of the company. Due to aforesaid premature redemption of preference shares, the paid-up share capital of the company stands reduced from Rs. 25,162.44 Lakhs to Rs. 7,239.90 Lakhs divided into 36,19,94,853 equity shares of Rs. 2/- each, as per a BSE filing.
The Board of Patanjali Foods also said that they have considered and approved the establishment of two wholly owned subsidiaries of the company in India.

Patanjali Foods Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, PATANJALI, currently trading at 1348.30 levels, has experienced a significant downturn from its recent peak of 1650, marking a noteworthy correction. This decline has led to the breach of a critical support level at 1400, which coincided with its 200-day Exponential Moving Average (EMA), indicating a bearish sentiment. With this breakdown, the stock faces additional support zones at 1280 and 1200 levels, which may serve as potential reversal points.

Investors and traders alike are keenly observing the stock's behaviour, particularly for signs of a reversal. A sustained move above the crucial 1400 level could indicate a shift in momentum and potential opportunities for long positions. Traders are advised to exercise caution and patience, awaiting confirmation of this reversal pattern before considering entry into the stock.

For traders, a prudent approach would be to initiate long positions only after the stock convincingly sustains above the 1400 level, setting a target of 1525, with a stop loss at 1320 to manage risk effectively. Meanwhile, medium to long-term investors may find favourable entry points near the support levels of 1280, employing a stop loss at 1200 on a closing basis. However, it's essential to remain mindful of the formidable resistance at 1525, requiring astute risk management strategies to navigate potential market volatility.

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.