Rs 8/Share Dividend: FMCG Stock Revises Record Date; Buy?

With a market valuation of Rs 787 Cr, Sukhjit Starch and Chemicals is a small-cap FMCG firm. With more than 75 years of industrial experience, Sukhjit is able to produce a wide range of by-products, including modified starches, dextrin, liquid glucose, HMS, maltodextrin, mono-hydrate dextrose, anhydrous dextrose, and sorbitol-70% solution, for a variety of industries.

Sukhjit Starch and Chemicals Dividend

"The Board of Directors have, in their meeting held today, approved payment of an Interim Dividend @ 80 % i.e. Rs. 8/-(Rs. Eight only) per equity share of face value of Rs. 10/ each, for the financial year 2023-24. Further to our intimation no. SSC/VPF /SE/2023-24/39 dated 03/01/2024 concerning the fixation of Record date for payment of Interim Dividend declared in the Board Meeting dated 03/01/2024, the Record Date is revised to 15/01/2024 (i.e. Monday) from 12/01/2024 (i.e. Friday). The said Interim Dividend shall be paid within a period of 30 days from the date of declaration to those shareholders of the Company whose names appear in the records of the Company, as on the said Record Date," said Sukhjit Starch and Chemicals in a stock exchange filing.

Sukhjit Starch and Chemicals Financials

The total income reported by the firm for the quarter ended September 30, 2023, was Rs. 324.10 crores, a drop of 6.72% YoY, from Rs. 347.45 crores for the period ended September 30, 2022. Its net profit for Q2FY24 was Rs 11.39 Cr, a 29.08% YoY fall from Q2FY23's Rs 16.06 Cr. For the quarter that ended on September 30, 2023, the firm reported EPS of Rs. 7.29, down from Rs. 10.28 in the same quarter of FY23.

Sukhjit Starch and Chemicals Share Price Target

KKunal V Parar, Vice President - Technical and Algo at Choice Broking said "The stock has recently experienced a robust breakout from its IPO base, marked by a Measuring Gap that enhances the likelihood of the breakout's sustainability. Furthermore, the stock is currently hovering around its all-time high (ATH) levels, signaling positive momentum. Notably, rising trading volumes on up days and declining volumes on down days contribute to the overall attractiveness of the stock."

"Following the breakout, the stock retraced to its breakout level and formed an accumulation pattern within the range of 465-470. Any pullback towards the 470 levels is considered a compelling accumulation opportunity. The price pattern suggests potential upside targets of 545 and 560. Examining indicators on the weekly chart, the stock is trading above its 20 Moving Average, indicating strength and suggesting potential for further upside. Additionally, the Relative Strength Index (RSI) recently crossed above the 60 level, a significant move not observed for almost a year, reinforcing positive momentum in the stock," the analyst added.

"In light of these factors, we recommend initiating a buy position at the current market price (CMP) and adding to the position on dips until the 470 levels. Our optimistic price targets are set at 550 and 560. It's important to note that our bullish view would be invalidated if the stock falls below 430," KKunal V Parar stated.

Disclaimer

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