Blue Chip FMCG Stock Announces 1000% Dividend: Check Record Date Here; Buy?

Within the FMCG industry, Godrej Consumer Products is a well-known firm. Mumbai, India is headquartered in the multinational consumer goods manufacturer Godrej Consumer Products Limited. Financial results for the quarter and year ending March 31, 2024, have been released by the firm. Godrej Consumer Products' shares hit a 52-week high of Rs 1,363.75 on Wednesday following the company's announcement of a huge 1000% dividend for FY24.

Godrej Consumer Products Dividend

The Board of Directors "Declared interim dividend @ Rs. 10/- per share (1000% on shares of face value of Re. 1/- each) for the financial year 2024-25. As intimated earlier the Record Date for ascertaining the names of the shareholders who will be entitled to receive the said dividend is Tuesday, May 14, 2024. The dividend will be paid on or before Wednesday, June 5, 2024," said Godrej Consumer Products in a regulatory filing.

Godrej Consumer Products Results

In contrast to a net profit of Rs 452.14 crore during the same time last year, Godrej Consumer Products (GCPL) announced on Monday a consolidated net loss of Rs 1,893 crore for the quarter that ended on March 31, 2024. According to a regulatory filing, the company's total revenue increased by 6% to Rs 3,385.61 crore from Rs 3,200.16 crore in Q4FY23.

Sudhir Sitapati, Managing Director, and CEO, GCPL, said "We delivered a strong performance for all four quarters in FY 2024, despite challenging conditions across markets. Our Consolidated organic volumes for Q4FY24 grew by 9%, led by the India business growing volumes at 7% and Indonesia growing volumes at 12%. This led to strong full-year organic volume growth delivery at 7% for our consolidated business, 6% for India and 11% for Indonesia. Our Consolidated reported revenue growth for Q4 and FY 2024 both stood at 6%. Our quality of profit was good, on the back of superior growth in higher margin countries and categories. Our reported Consolidated gross margin in Q4 improved sharply by 340 bps year-on-year. Our EBITDA* margin, too, improved by 225 bps year-on-year post step up in media investments, which increased by 50% year-on-year. This resulted in an annual growth in EBITDA* of 21%."

"We continue to remain focused on driving volume-led growth along with healthy investments in our brands and improvement in profitability. We are launching new products in accordance with our purpose to bring the goodness of health and beauty to consumers. (1) Cinthol Foam Bodywash, has been launched in select markets in India in April at Rs 120. This product targets the fast-growing Bodywash segment that is currently Rs 700 crore and growing at more than 20% per annum. (2) Stella Electric Diffuser, which will be launched in Indonesia at IDR 35,000, is aimed at rapidly expanding the penetration of the Air Freshener category. This is the first of its kind product in Indonesia," said Sudhir Sitapati. We continue to improve the strength of our balance sheet. We have completed the re- organization in our East-Africa business. We are happy to report that there will be a positive impact on PAT of Rs 50 crore per annum despite the negative impact on revenue of Rs 470 crore per annum. We have taken an exceptional accounting charge of Rs 2,378 crore in our consolidated P&L statement. The impact of this charge is cash positive," said Sudhir Sitapati.

"We are on track in our journey to reduce wasted cost and are deploying this to drive profitable and sustainable volume growth across our portfolio through category development. Based on the recommendation of the Nomination & Remuneration Committee, the Board has appointed Mr. Aditya Sehgal (DIN: 09693332) as the Non-Executive Independent Director of the Company for a period of five years with effect from July 15, 2024, subject to the approval of the shareholders in the ensuing Annual General Meeting. A short profile is attached herewith. We remain committed to our purpose of bringing the goodness of health and beauty to consumers in emerging markets," he further added.

Godrej Consumer Products Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, GODREJCP has surged to a fresh all-time high of 1346.70 levels following its recent earnings report, signaling strong bullish momentum. This ascent was underpinned by a robust breakout above the crucial resistance level of 1285, supported by substantial trading volumes. Furthermore, the stock's positioning above its short-term, medium-term, and long-term Exponential Moving Average (EMA) levels underscores its inherent strength.

For current traders and investors, maintaining positions in GODREJCP is advisable, with a prudent trailing stop loss set at 1285 levels to safeguard against potential downside risks. This strategy aligns with the stock's recent breakout, providing room for further upward movement towards the target of 1410 levels.

Meanwhile, for prospective investors, adopting a strategy of purchasing on market retracements or dips is recommended. This approach allows for entry at more favorable price levels while still capitalizing on the stock's upward momentum and bullish outlook. Overall, GODREJCP presents an attractive opportunity for both existing and new investors, given its strong technical positioning and optimistic growth prospects.

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.