Rs 6/Share Dividend: Patanjali Foods To Turn Ex-Dividend Soon For 300%, Buy?

Large-cap firm Patanjali Foods operates in the FMCG industry. The firm is a prominent FMCG operator and a pioneer of soy foods in India. It is also a leading maker and marketer of a healthy variety of edible oils. Additionally, it ranks among the largest palm plantation businesses in India. The company has declared a final dividend of 300% for FY23 and as per the data available on BSE the stock is going to trade ex-dividend on 21 September 2023.

Patanjali Foods Dividend

"The Dividend of Rs. 6/- per equity share of face value of Rs. 2/- each, as recommended by the Board of Directors for the financial year 2022-23, if approved at the 37th AGM, would be paid subject to deduction of tax at source, as may be applicable, on or after September 30, 2023, to those persons or their mandates: a) whose names appear as Beneficial Owners as at the end of the business hours on Thursday, September 21, 2023 (Record date) in the list of Beneficial Owners to be furnished by National Securities Depository Limited and Central Depository Services (India) Limited in respect of the shares held in electronic form; and b) whose names appear as Members in the Register of Members of the Company as at the end of the business hours on Thursday, September 21, 2023 after giving effect to valid request(s) received for transmission / transposition of shares," said Patanjali Foods in a stock exchange filing.

Patanjali Foods Financials

The company's net profit after tax dropped by 64% year on year to Rs 878 crore for the quarter ended June 30 from Rs 241 crore a year earlier. In the first quarter of FY24, overall operating revenue climbed 7.7% to Rs 7,767 crore. From Rs 7,038 crore a year ago, the total expenditures for the quarter climbed to Rs 7,691 crore. Its operating margin plummeted 326 basis points to 2.17%, and its EBITDA fell 57% YoY to Rs 169 crore. During the quarter, the company reported an operating loss of Rs. 147 crore.

Patanjali Foods Share Price Target

Om Mehra, Choice Broking said, PATANJALI FOODS, primarily involved in the oil-seed processing and edible oil refining sector, currently trades at 1300 after a recent consolidation phase that lasted for about a month. Examining the weekly chart reveals a robust support level at approximately 1250. Several technical indicators and patterns are pointing towards a favorable outlook for the stock. It is noteworthy that the stock is trading above both its 20-day and 50-day moving averages, indicating a short to medium-term uptrend.

The Relative Strength Index (RSI) is displaying signs of recovery from lower levels and resides comfortably in the positive zone, suggesting growing buying interest. Furthermore, the presence of a 23.6 percent Fibonacci retracement level coinciding with the 1250 support level provides additional validation of its positive trajectory. The gradual increase in volume participation on the daily chart confirms the positive price action and a recent breakout from a previous resistance pattern underscores the stock's gathering momentum and bullish sentiment among traders.

Bollinger Bands indicate that the stock is trading above the middle band, reflecting strong buyer interest at the current market price. Additionally, when benchmarked against the BSE 500 index, Patanjali Foods Ltd has outperformed the Sensex, yielding a 4.21 percent gain in the past week, highlighting its relative strength in the market. The outlook for Patanjali Foods appears optimistic for the short to medium term.

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.