Rs 3 Dividend & 1:2 Stock Split Ahead: Buy Ashish Kacholia Backed Stock To Be An Eligible Shareholder?

The main activities of Agarwal Industrial Corporation Limited, a small-cap company in the chemical industry, are (i) manufacturing and trading bitumen and related products that are extensively used in infrastructure projects; (ii) providing logistics for bulk bitumen and LPG through its own specialised tankers; and (iii) generating power through wind mills. Renowned investor Ashish Kacholia owns 5,97,977 fully paid-up equity shares in Agarwal Industrial Corporation, representing a stake of 4.00%. However, the company's announcement of the record date for its upcoming Rs 3 dividend and 1:2 stock split is what's making the stock more intriguing.

Agarwal Industrial Corporation Record Date For Dividend & Stock Split

"The Board considered and approved the period of Book Closure commencing from September 07, 2024 to September 13, 2024 (both days inclusive) for the purposes of payment of Dividend @ 3.00/- per Equity Share of the face value of Rs. 10/- for the F.Y. 2023-2024, if declared by the members of the Company in the ensuing Annual General Meeting (AGM) and for the purposes of E-Voting at the Thirtieth Annual General Meeting to be held on September 13, 2024," the company informed to stock exchanges.

The Board of Directors, "Approved splitting / sub-division of the Equity Shares of the Company of nominal value of Rs.10 (Rupees Ten) each fully paid up into Rs. 2.00 (Rupees Two) each fully paid up in accordance with the provisions of the Companies Act 2013 and Rules made thereunder and SEBI( LODR) Regulations 2015 as amended and Alteration of MOA and AOA accordingly, and further subject to consent/ approval of the Members of the Company," said Agarwal Industrial Corporation in a stock exchange filing.

For the above-mentioned corporate actions, Agarwal Industrial Corporation has fixed the record date as 6th September.

Agarwal Industrial Corporation Q1 Results

The chemical firm reported net sales for the June 2024 quarter of Rs. 591.47 crore, which is 7.54% more than the June 2023 quarter's Rs. 549.98 crore. In Q1FY25, the company's net profit was Rs. 13.52 crore, up 5.63% from Rs. 12.80 crore in Q1FY24. From Rs. 22.74 crore in the June 2023 quarter to Rs. 24.92 crore in the June 2024 quarter, EBITDA went up by 9.59% YoY.

Agarwal Industrial Corporation Share Price Target

"Petrochemical manufacturing company Agarwal Industrial Corporation Limited is currently trading at a high valuation of Rs. 1330, as seen from its RSI readings of 70 on both the weekly and monthly timeframes. Any dip of up to Rs. 1150 could provide a lucrative buying opportunity. The company's current PE ratio stands at 15.14, which is slightly above the sector PE of 15.3. While the small-cap company has offered a dividend yield of 0.2% and an ROE of 22.85%, its stock is trading at 3.58 times its book value. Those interested can explore this stock in the buying range of Rs.1150-1180 for a target price of Rs.1380-1650. They can hold this stock for a period of 2-10 weeks while adhering to the stop loss of Rs. 1080," recommended V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

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.