52W-High Stock: Small-Cap Metal Stock Declares Rs 10/Share Dividend; Buy?

On Wednesday, the shares of Goa Carbon opened on the BSE at Rs 632.85 apiece and during the morning deals the scrip touched a fresh 52-week-high of Rs 710 apiece logging a gain of 17.24%. While writing this copy at 12.40 pm, the stock was trading 15.57% higher at Rs 699.85 apiece. The rally in the stock price was witnessed after the company declared Q3 results along with an interim dividend of Rs 10 per share.

Goa Carbon Dividend

"The Board of Directors of the Company has declared an interim dividend of Rs.10/- per equity share of Rs.10/- each (at the rate of 100%) for the financial year 2023-24. The Board has also fixed 29th January 2024 as the record date for the purpose of payment of interim dividend. The interim dividend shall be paid on or after 7th February 2024," said Goa Carbon in a regulatory filing.

At its meeting on January 16, 2024, the Board of Directors announced a 100% interim dividend, or Rs 101 for each equity share, amounting to Rs 915.11 lakhs. The interim dividend will be paid, according to the firm, on or before February 7.

Goa Carbon Financials

On a standalone basis, the company reported net sales of Rs 272.43 crore in the December 2023 quarter down 34.63% from Rs. 416.76 crore in the December 2022 quarter. Its net profit stood at Rs. 34.59 crore in Q3FY24 up 35.18% from Rs. 25.59 crore in Q3FY23 whereas EBITDA stood at Rs. 50.55 crore in the quarter under review up 4.18% from Rs. 48.52 crore in the year-ago quarter.

Goa Carbon Share Price Target

According to Mandar Bhojane - Equity Research Analyst at Choice Broking GOACARBON is currently trading at Rs 697. The stock appears to be forming a Rounding Bottom pattern, and this formation is accompanied by significant trading volume. Market expectations suggest the possibility of further upward movement, with a potential target of around Rs 850 & Rs 1000. On the downside, substantial support is observed near Rs 620.

Furthermore, GOACARBON is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 75, signalling an upward trajectory and confirming an increase in buying momentum.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 620 to protect the investment in case of an unexpected market reversal. A prudent strategy involves considering buying opportunities on market dips at levels of Rs 670 & Rs 650.

In summary, considering the technical analysis and prevailing market conditions, GOACARBON appears to present a promising buying opportunity for those targeting a Rs 850 & Rs 1000 price objective, contingent upon the implementation of prudent risk management measures.

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.