Large Cap Debt Free Stock Announces 65% Interim Dividend For FY24: Buy?

A major player in the capital goods industry is CG Power and Industrial Solutions Ltd. CG is a conglomeration of engineers that offers a wide range of products, solutions, and services related to power and industrial equipment. With an ongoing presence and production sites spread over nine nations in Asia, Europe, and North America, CG is a smart provider of electrical, industrial, and consumer goods and solutions globally. Transformers, switchgear, circuit breakers, network protection & control gear, project engineering, HT and LT motors, drives, Power Automation Products, and turnkey solutions are all part of its distinctive and varied offering.

CG Power and Industrial Solutions Dividend

"The payment of Interim Dividend at Rs. 1.30/-per Equity Share i.e. 65% on face value of Rs. 2/-per share for the Financial Year 2023-24. The Record Date for determining the Members eligible to receive aforesaid Interim Dividend is Monday, 5th February, 2024. The Interim Dividend will be paid on or after 21st February, 2024, but within 30 days from the declaration of Interim Dividend in terms of the relevant provisions of the Companies Act, 2013," said CG Power and Industrial Solutions in a regulatory filing.

CG Power and Industrial Solutions Financials

On Tuesday, CG Power and Industrial Solutions announced a 15.45% drop in its consolidated net profit for the December quarter, amounting to Rs 197 crore. The company reported that its consolidated net profit for the year prior quarter was Rs 233 crore in a regulatory filing. According to the company, there was an extraordinary income of almost Rs 31 crore for the quarter that ended on December 31, 2022. Order inflows rose 3.7% YoY to Rs 2,300 crore, while the order book expanded to Rs 5,600 crore, growing 34% YoY. The company's aggregate sales for the quarter were higher at Rs. 1,979 crores recording a growth of 13% YoY while its ROCE (annualised) for Q3FY24 was at 38%.

CG Power and Industrial Solutions Share Price Target

CG Power is slightly bullish on the Daily charts but faces strong resistance at 477. A daily close below support of 414 could lead to a target of 370 in the near term. Next resistance above 477 will be at 504, said AR Ramachandran from Tips2trades.

Disclaimer

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