Rs 7/Share Dividend: BSE 500 Stock To Turn Ex-Dividend Soon For 350%, Buy?

Finolex Cables is a mid-cap company dealing in the capital goods sector. The largest and most prestigious producer of electrical and telecommunication cables in India is Finolex Cables Ltd. PVC-insulated electrical cables for the automobile sector are the company's core business portfolio. The company includes manufacturing plants in Goa, Uttarakhand, Pimpri, and Urse near Pune. The company additionally manufactures lighting products, electrical accessories, switchgear, fans, and water heaters in addition to a large range of wires and cables. The company has declared a final dividend of 350% for FY23 and as per the data available on BSE, the stock is going to trade ex-dividend on 22 September 2023.

Finolex Cables Dividend

"The Board of Directors has recommended Dividend on equity shares @ 350% i.e. Rs. 7 per equity share of Rs.2/- each fully paid up for the Financial Year ended on March 31, 2023 that is proposed to be paid by October 28, 2023, subject to the approval of shareholders. Record date for the purpose of entitlement of Dividend shall be September, 22, 2023, said Finolex Cables in a stock exchange filing.

Finolex Cables Financials

On a standalone basis, the company recorded revenue from operations of Rs 1,204.25 crore in the June 2023 quarter up 18.57% from Rs. 1,015.65 crore in the June 2022 quarter. Its net profit was Rs. 132.24 crore in the first quarter of FY24, up 38.37% from Rs. 95.57 crore in the same quarter of FY23 and its EBITDA was Rs. 183.21 crore, up 40.04% from Rs. 130.83 crore. The EPS for Finolex Cables grew from Rs. 6.25 in June 2022 to Rs. 8.65 in June 2023.

Finolex Cables Share Price Target

On Tuesday, the shares of Finolex Cables opened on the BSE at Rs 1166.50 apiece and made a 52-week-high of Rs 1,179.45 during morning deals.

Deven Mehata, Equity Research Analyst of Choice Broking said, "FINCABLES exhibits a daily and monthly breakout pattern resembling a rounding bottom and has recently reached an all-time high level. It has established a robust support level of around 984, which is in proximity to its 20-day Exponential Moving Average (EMA). As of the current trading price of 1148, there is a minor resistance visible on the charts at 1300.

Once the stock manages to surpass this previously mentioned resistance level, it is expected to approach the target price of 1500 or potentially higher. The Relative Strength Index (RSI) is currently at a comfortable 66, indicating underlying strength. Furthermore, the stock is trading above all significant moving averages, underscoring its strength. Based on the above technical analysis, buying on lower levels in FINCABLES is advisable with strong support at 1090. The stock can move higher towards 1300 and above towards 1500."

Disclaimer

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