Rs 10 & Rs 15 Dividend: Which FMCG Sugar Stock To Buy For More Sweetness?

The financial results for the quarter and year that ended on March 31, 2024, have been released by Avadh Sugar & Energy and Magadh Sugar & Energy. Both FMCG businesses have proposed a dividend of Rs 10 to Rs 15 per share to their shareholders in addition to their earnings. Following the aforementioned developments, let's examine which stock would be best for enhancing the sweetness of your portfolio.

Avadh Sugar & Energy

The Board of Directors of the company have recommended a dividend of Rs. 10/- per equity share of Rs.10/- each for the year ended March 31, 2024, subject to approval of the shareholders.

Avadh Sugar & Energy's net profit dropped by 30.09% to Rs 55.29 crore in the quarter that ended in March 2024 from Rs 79.09 crore in the quarter that ended in March 2023. Sales fell from Rs 846.21 crore in Q4FY23 to Rs 619.80 crore in Q4FY24, a 26.76% drop. Net profit for the entire year climbed by 27.80% to Rs 128.11 crore in the fiscal year that ended in March 2024 from Rs 100.24 crore in the fiscal year that ended in March 2023. Sales dropped to Rs 2693.51 crore in FY24 from Rs 2798.01 crore in FY23, a 3.73% contraction.

Avadh Sugar & Energy Share Price Target

"Food manufacturer Avadh Sugar & Energy Limited is currently displaying weak momentum in the market and is likely to test the Rs. 500-530 range within a few weeks. Such a development could present fresh buying opportunities in the Rs.500-530 range for those interested in the sector. The stock has offered 12.60% returns in a year but has not declared any dividend. For this stock, individuals can initiate buying and averaging at Rs.620, and set a target of Rs. 630-850 for 4-10 months. However, they must set their stop loss at Rs. 440 to protect capital," V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) commented.

Magadh Sugar & Energy

The Board of Directors of the company have recommended a dividend of Rs. 10/- per equity share and additionally a special one-time dividend of Rs. 5/- per equity share totalling Rs 15/- per equity share (face value of Rs 10/- each) for the financial year ended March 31, 2024, subject to the approval of the shareholders, as per a regulatory filing.
Compared to the previous year's quarter ending in March 2023, when the net profit of Magadh Sugar & Energy was Rs 35.05 crore, it climbed 33.75% to Rs 46.88 crore in the quarter ended March 2024. From Rs 298.55 crore in Q4FY23 to Rs 288.12 crore in Q4FY24, sales dropped by 3.49%. Comparing the year-end of March 2024 to the year-end of March 2023, net profit climbed 131.62% to Rs 116.41 crore, while in the prior year, it was Rs 50.26 crore. Comparing FY24 to FY23, sales went up by 15.02% to Rs 1096.58 crore from Rs 953.42 crore.

Magadh Sugar & Energy Share Price Target

"Distilleries company Magadh Sugar & Energy Limited's current price presents new buying opportunities for those seeking to explore this sector. The company has delivered 83.30% returns in a year but did not offer any dividend despite the sector yield of 1.54%. Judging by the current price level, individuals may initiate buying and averaging at Rs.620 and set a target for Rs. 740-1100. I recommend holding this stock for 5-7 months while following a stop loss at Rs.510," V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) claimed.

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.