Low P/E Pharma Stock Announces Record High Dividend of Rs.11.50/Share; Buy For 115% Payout?

After the company announced financial results for the quarter and financial year ended on March 31, 2024, along with a dividend recommendation of Rs. 11.50 per share, which is its highest-ever payout since its inception, Albert David, a small-cap pharmaceutical company, ended 3.31% lower on Thursday at Rs. 1164.90 apiece with a low price to earning ratio of 8.83, lower than its sector PE ratio of 41.6. Based in Kolkata, India, Albert David Limited (ADL) is a recognised pharmaceutical company that is well-known for producing herbal dosage forms, infusion solutions, pharmaceutical formulations, and bulk drugs. The company is a part of Kolkata's well-known "Kothari Group, India" of industrialists.

Albert David Dividend

The Board of Directors "Recommended Final Dividend at the rate of Rs.11.50/- (115%) per share of Rs.10/- face value, for the financial year ended on March 31, 2024, subject to approval of the shareholders at the forthcoming Annual General Meeting of the Company. Fixed Friday, August 2, 2024, as the Record Date for the purpose of payment of Final Dividend, if approved by the shareholders at the ensuing 85th AGM of the Company," said Albert David in a regulatory filing.

Albert David Financials

Albert David's net profit jumped by 246.11% to Rs 12.91 crore in the quarter that ended in March 2024 from Rs 3.73 crore in the quarter that ended in March 2023. Sales in Q4FY24 climbed 9.38% to Rs 89.06 crore from Rs 81.42 crore in Q4FY23. Net profit for the entire year went up by 108.52% to Rs 75.42 crore in the fiscal year that ended in March 2024 from Rs 36.17 crore in the fiscal year that ended in March 2023. Sales surged 6.12% in FY24 to Rs 362.46 crore from Rs 341.56 crore in FY23.

Albert David Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "ALBERTDAVD is currently trading at 1173.55 levels and appears to be in a consolidation phase within the range of 1100-1234. This range aligns with a robust support zone at 1085, encompassing within the support range of the stock. The convergence of these factors suggests a significant level of stability and a potential opportunity for traders and investors. The consolidation within this range reflects a delicate equilibrium between buying and selling pressures, indicating a period of price discovery and market participants reassessing their positions. It is noteworthy that the support zone encompasses the area just below the 50-Day EMA, This indicates a region where the price is likely to find support, potentially leading to a rebound in the stock's value."

"A potential breakout above the upper boundary of this consolidation range, specifically above 1235 levels, could act as a catalyst for a bullish move. In such a scenario, traders might look to capitalize on the upward momentum, with a target set at 1515 and possibly beyond. The Momentum indicator, Relative Strength Index (RSI), currently stands at 52.60 levels, signalling a neutral stance. Traders and investors are advised to closely monitor the price action and be vigilant for a potential breakout. The support range, particularly around 1085 levels, could serve as a strategic entry or exit point. Overall, the analysis points towards a cautiously optimistic outlook for ALBERTDAVD, contingent on a decisive breakout above the upper boundary of the consolidation range," Deven Mehata added.

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.