Highest Ever Dividend of Rs 9: August 20 - Record Date; Buy The BSE 100 Blue Chip Stock?

One of the major companies in the agrochemicals market is PI Industries Ltd. Agrochemicals and pharma are the two divisions that make up the company. With a market valuation of Rs 56,113.70 Cr in the BSE 100 index, shares of PI Industries closed 3.16% higher at Rs 3698.55 apiece on Wednesday following the company's announcement of its highest-ever dividend distribution of Rs. 9 per share for FY24.

PI Industries Dividend

"We wish to inform you that the Board of Directors of the Company at their meeting held today i.e. May 21, 2024, have recommended a final dividend at the rate of Rs. 9/- per share i.e., 900% on the equity shares of the Company carrying face value of Re. 1/- each for the financial year 2023-24, subject to the approval of the shareholders at the forthcoming Annual General Meeting ('AGM'). The total dividend for the year (including interim dividend of Rs. 6/- per equity share paid during the year) would be Rs. 15/- per equity share of Re.1/- each. The final dividend, if approved, by the shareholders will be credited/ dispatched on or before September 20, 2024. Further, pursuant to Regulation 42 of the said Regulations, the Company has fixed Tuesday, August 20, 2024, as the record date for the purpose of determining the members eligible to receive the final dividend for the financial year 2023-24," said PI Industries in a stock exchange filing.

PI Industries Financials

The fourth quarter ending March 31, 2024, saw a 31.7% YoY rise in net profit for the firm, coming in at Rs 369.5 crore. PI Industries reported a net profit of Rs 280.6 crore for the same period in FY23, according to a regulatory filing from the company. Compared to the same time in the previous fiscal year, when revenue from operations was Rs 1,565.6 crore, the company's revenue from operations climbed by 11.2% to Rs 1,741 crore in the quarter under review. In the fourth quarter of FY24, EBITDA increased by 29% to Rs 441.8 crore from Rs 342.8 crore in Q4FY23. During the reporting quarter, the EBITDA margin was 25.4%, while during the same time in the previous fiscal year, it was 21.9%.

PI Industries Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "PIIND is currently valued at Rs 3670 and has recently retested and reversed from a daily trendline, accompanied by robust trading volume. These patterns suggest a strong upward trajectory for the stock. The Relative Strength Index (RSI) is currently at 51 and trending upwards, indicating a significant surge in buying momentum. Both the RSI and Stochastic RSI are in the overbought region, suggesting that positional traders may consider holding their positions and implementing a trailing stop-loss."

"The overall trend for PIIND is bullish, with various technical indicators reinforcing the optimistic outlook. Given these signals, there is potential for the stock to reach a target price of Rs 4000 in the near term. It is advisable to consider buying on dips, especially around Rs 3550, to capitalize on potential retracements in the stock price. To prudently manage risk, implementing a stop-loss (SL) at Rs 3480 is recommended. This precautionary measure is crucial to safeguard investments in the event of an unexpected market reversal," the analyst stated.

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.