100% Payout: NBFC Stock To Trade Ex-Dividend Today For Rs 2/Share; Buy?

A large-cap NBFC company named Poonawalla Fincorp Ltd. will trade ex-dividend today. The corporation has announced a 100% payout at a face value of Rs. 2, and the record date for the same has been set for January 31, 2024. Below, let's talk about the stock prediction.

Poonawalla Fincorp

For the fiscal year that ends on March 31, 2024, the firm has announced an interim dividend of Rs. 2/-per equity share, or 100% of face value of Rs. 2/-per share. The dividend will be paid to the eligible members on February 13, 2024. In order to determine the members' eligibility for such an interim dividend, the firm has set Wednesday, January 31, 2024, as the record date.

Poonawalla Fincorp Financials

In the third quarter of the fiscal year 2023-24, NBFC Poonawalla Fincorp Ltd reported its highest-ever quarterly profit of Rs 265.1 crore on Thursday, January 18. profit jumped by 76.3% in comparison to the same time in the previous fiscal year. Poonawalla Fincorp had a net profit of Rs 150.4 crore for the same period last year, the company said in a regulatory statement. According to the firm, its sales climbed by 52.1% to Rs 762.6 crore from Rs 501.4 crore during the same period in the previous fiscal year.

The Return on Assets (RoA) for Poonawalla Fincorp showed a noteworthy rise, coming in at 5.3%. This is an improvement of 84 basis points (bps) year on year and 34 bps quarter on quarter. With a 159% year-on-year rise, the company's quarterly distribution reached a record-breaking Rs 8,731 crore, its highest level ever. At Rs 21,946 crore, the Assets Under Management (AUM) showed impressive growth as well, rising by a whopping 58% YoY. Poonawalla Fincorp's gross non-performing assets (NPA) improved by 36 basis points year on year to 1.33% in terms of asset quality.

Poonawalla Fincorp Share Price Target

Poonawalla Fincorp Ltd is currently trading with a 54 RSI (14) on the daily time frame. It is trading at nearly a 10% discounted price compared to its recent all-time high. We recommended this stock at 430 just two months ago, and since then, it has reached an all-time high of 519, resulting in nearly a 20% gain. Considering this, the current dip presents an opportunity for "Dip Buying" in Poonawalla.

There is a lot of potential in the infrastructure sector, and small-cap stocks could perform well in the future. Valuation, momentum, and price action, when considered together, suggest holding onto the stock for more gains. For mid-term traders, the stop-loss is set at 370, and a fresh target is expected in the range of 520 to 900. Volumes are on the rise, and the holding period could be anywhere from 2 weeks to 9 months. This advice comes from V.L.A. Ambala, a SEBI Registered Research Analyst, featured in 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.