Debt-Free Stock With High Promoters’ Stake Turns Ex-Dividend For Rs 50/Share: Buy?

Today, shares of Akzo Nobel India Ltd began on the BSE at Rs 2802.45 apiece and fell during the morning session, reaching an intraday low of Rs 2735.25 apiece. The stock is under pressure to sell down as it goes ex-dividend today for a payout of Rs 50 per share. The record date for the aforementioned dividend amount is February 16, 2024. As a result, India uses the T+1 settlement procedure, wherein the stock trades ex-date on the same day.

Akzo Nobel India Dividend

The Board of Directors "Recommended interim dividend of Rs 50/-(Rupees Fifty only) per equity share for the financial year 2023-24. This dividend shall be payable within 30 days from today. Fixed Friday, 16th February 2024 as the Record Date for determining entitlement of members to interim dividend for the financial year 2023-24. A member, whose name is recorded in the Register of Members or in the Register of Beneficial Owners maintained by the Depositories as on the close of business hours of Friday, 16th February 2024, shall be entitled for this dividend," said Akzo Nobel India in a stock exchange filing.

"The Board of Akzo Nobel India remains committed to enhancing value for it's shareholders. Hence, based on the performance in the nine months ended 31 December 2023, the Board is delighted to announce an interim dividend of Rs 50 per share for FY'24" said Mr. Rajiv Rajgopal, Chairman and Managing Director, Akzo Nobel India.

Akzo Nobel India Financials

The firm reported a five per cent rise in revenue from operations of Rs 1,032.7 crore and a 20% increase in EBIT from operations of Rs 146.3 crore during the quarter ended 31st December 2023. According to the corporation, its net profit in Q3FY24 jumped by 17% to Rs 113.8 crore.

Rajiv Rajgopal, Chairman and Managing Director, Akzo Nobel India said, "We continued to build on profitable growth in Q3 and nine months of FY'24. For the first time, our quarterly topline has surpassed the milestone of Rs 1,000 crore mark, led by double digit growth in volumes. Our Coatings business and B2B segments sustained their robust growth trajectory. In the decorative paints business, retail saw a strong volume growth in the quarter and saw margin improvements. While we continued to invest in our business and brands, our profitability was further strengthened due to raw material deflation and favourable mix coupled with operating leverage."

Akzo Nobel India Share Price Target

Akzo Nobel stock price is sideways to bearish on the Daily charts with strong resistance at 2890. A daily close above this resistance could lead to a target of 2996. Support will be at 2680, said AR Ramachandran from Tips2trades.

Akzo Nobel India Shareholding Pattern

During Q3FY24, the company reported promoters' shareholding of 74.76%, FIIs stake of 3.20%, DIIs stake of 8.56% and public stake of 13.49%. The promoter stake of the debt-free company Akzo Nobel India at the current level is much higher than its peers such as Asian Paints, Indigo Paints, Shalimar Paints and Retina Paints.

Disclaimer

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