Chemical Stock Declares Rs 5 Interim & Rs 3 Special Dividend For FY24: Buy For 400% Payout?

In the chemical industry, Navin Fluorine International Limited is a mid-cap company. NFIL, or Navin Fluorine International Ltd., is a reputable and sizable speciality fluorochemical firm in India. NFIL, which was founded in 1967, is the operator of one of India's largest integrated fluorochemical complexes, having production sites in Dewas, Central India, and Surat, Western India. Since the company has announced a 250% interim dividend and a 150% special dividend for FY24, market watchers are paying close attention to the stock.

Navin Fluorine International Dividend

On Tuesday, 31st October, the company said in a stock exchange filing that "The Board of Directors, at its Meeting held today, has declared an interim dividend of Rs 5/- (INR Five only) per equity share of the face value of Rs 2/- each, plus a Special Dividend of Rs 3/- (INR Three only) per equity share of the face value of Rs 2/- each (i.e. 150% of the face value) to commemorate the centenary birth year of the founder Shri. Arvind Mafatlal, for the Financial Year 2023-2024. Pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Friday, November 10, 2023 has been fixed as the Record Date for ascertaining eligibility of Members for the payment of aforesaid Interim Dividend and Special Dividend."

"The Interim dividend and Special Dividend, as declared by the Board, will be paid to Shareholders holding equity shares of the Company, either in electronic or in physical form, after determining eligibility of Shareholders entitled for payment of dividend, which will be based on the record date i.e. November 10, 2023. The Interim Dividend and Special Dividend will be paid on or after November 27, 2023," said Navin Fluorine International in a stock exchange filing.

Navin Fluorine International Q2 Results

The total income reported by the firm for the quarter ended September 30, 2023, was Rs. 494.90 crores, up 15.07% YoY, from Rs. 430.10 crores for the quarter ended September 30, 2022. With a 4.79% YoY rise from Rs 57.81 Cr in Q2FY23 to Rs 60.58 Cr in Q2FY24, it declared a net profit. With a growth of 4.46% YoY, the company's reported EPS for the period ended September 30, 2023 was Rs.12.18, whereas for the period ended September 30, 2022, it was Rs.11.66.

The company's reported total income for the quarter ended September 30, 2023, was Rs. 494.90 crores, down 0.91% QoQ from the period ended June 30, 2023, of Rs. 499.45 crores. In Q2FY24, it recorded a net profit of Rs 60.58 Cr, which was 1.54% QoQ less than the Rs 61.53 Cr in Q1FY24.

Navin Fluorine International Share Price Target

Mandar Bhojane-Equity Research Analyst at Choice Broking said, "The stock NAVINFLUOR is presently priced at Rs 3405 and is experiencing a bearish market trend. Both the monthly and weekly charts show a breach of the daily and weekly trendlines, indicating that the downward momentum is expected to persist in the near term. The critical level of support for the stock is situated at Rs 3060. In the event of a price turnaround occurring near the support levels of 3060 or 2800, it may offer a favourable chance for buying. Nonetheless, it is crucial to approach such a trade with vigilance and implement sound risk management strategies."

"The Relative Strength Index (RSI) currently stands at 15.34 and is trending downward, indicating a growing negative momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) recently experienced a negative crossover. These technical indicators align with the bearish outlook and suggest that NAVINFLUOR may potentially reach the support level of 3060 in the near term. To effectively manage risk, it is advisable to avoid trading this stock in the short run to protect your investment in case of an unexpected market fluctuation. In summary, based on the technical analysis and prevailing market conditions, NAVINFLUOR appears to be in a negative trend. Consider a buying opportunity near 3060 to 2800 levels only if a reversal pattern becomes evident while keeping risk management a top priority," added the analyst.

Disclaimer

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