Debt-Free Stock Is 9% Away From 52W-High After Trading Ex-Dividend For Rs 50: Buy?

Akzo Nobel India Limited is a mid-cap paint company which closed in the last trading session with a market cap of Rs 12,891.10 Cr. With an upside gap of 0.98%, the stock closed at Rs 2830.70 a share after trading ex-dividend for Rs 50 per share. With the share hitting a 52-week high of Rs 3,076.40 on June 02, 2024, and a 52-week low of Rs 2,105.10 on February 28, 2023, the stock has gone up 34% from its one-year low and is just 9% away from its 52-week high at the current market price.

Akzo Nobel India Dividend

The company's Board of Directors recommended an interim dividend of Rs 50/-per equity share for the 2023-24 fiscal year. The record date to determine a member's eligibility for the interim dividend was set for Friday, February 16, 2024. This implies that on Friday, February 16, 2024, at the end of business hours, the member whose name appears in the Register of Members or the Register of Beneficial Owners maintained by the Depositories will be eligible to receive this dividend.

Akzo Nobel India Financials

According to a regulatory filing, Akzo Nobel India Ltd. recorded a 16.83% growth in its consolidated net profit to Rs 113.8 crore in the December 2023 quarter from Rs 97.4 crore in the October-December quarter of the year prior. Its revenue from operations climbed by 4.65% to Rs 1,032.7 crore in Q3FY24 which was Rs 986.8 crore in Q3FY23. In the December quarter, Akzo Nobel, the company that makes Dulux paints, marked a net expense of Rs 889.6 crore, which was a rise of 2.53% YoY.

Akzo Nobel India Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said AKZOINDIA, currently priced at Rs 2840, has recently navigated a brief phase of minor declines followed by sideways consolidation. A notable strength lies in the stock's ability to find support at the 50-day Exponential Moving Average (EMA), indicating a potential for further upward movement. The target for AKZOINDIA is set ambitiously at Rs 3100 with a substantial support level identified near Rs 2650 providing a cushion on the downside.

Crucially, AKZOINDIA is exhibiting resilience by trading above key Exponential Moving Averages, including the 20-day, 50-day, and 100-day indicators. This suggests a robust bullish momentum, reinforcing expectations of sustained upward price action.

For effective risk management, a prudent strategy involves setting a stop-loss at Rs 2650 to safeguard the investment. Additionally, adopting a strategic approach includes seizing buying opportunities during market dips, enhancing potential entry points.

Upon scrutinizing the technical indicators and considering prevailing market conditions, AKZOINDIA emerges as a promising investment opportunity. With a target price of Rs 3100 subject to the implementation of prudent risk management measures, this stock presents itself favorable for investors seeking potential gains in the current market environment. The observed support levels, coupled with the bullish momentum, contribute to a positive and promising outlook for AKZOINDIA in the stock market.

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.