Rs 50/Share Dividend: Textile Stock To Trade Ex-Dividend On September 20; Is It Worth Buying?

Victoria Mills, manufacturer of yarn and cotton waste, will be trading ex-dividend on Wednesday for its final dividend payout of Rs 50 per share for the financial year 2022-23. The stock has rallied by over 81% in past six months.

The company is set to pay a whopping Rs 50 dividend per share to shareholdings for the fiscal year April 1, 2022, to March 31, 2023.

As per the regulatory filing, the payment of Dividend as recommended by the Directors, if approved at the meeting, will be made to those members whose names are on the Company's register of members on Wednesday, September 20, 2023.

Thereby, the stock will turn ex-dividend on September 20.

Also, the Register of Members of the Company shall remain closed from Thursday, September 21, 2023, to Wednesday, September 27, 2023 (both days inclusive).

Victoria Mills is engaged in the manufacture and sale of cloth, yarn and cotton waste, products manufactured are dhoties, sarees, shirtings, printed poplins, volles, grey and bleaching long cloth, gadlapat, coatings, etc.

On BSE, the stock stood at Rs 4130 apiece, down by 3.5% on Monday compared to the previous closing. Its market value was at Rs 40.85 crore.

As per Trendlyne data, the company has paid Rs 50 dividends per share at least 18 times since 15, 2006.

Is Victoria Mills Worth Buying?

According to Trendlyne's poll, 58.33% have recommended to buy the stock, while 25% have suggested selling and 16.67% recommended holding Victoria Mills shares.

The stock's RSI is in the mid-range to 68.5, while MFI at 77.9 hints that the stock is overbought. While the 1-year beta is at 0.5, indicating very low volatility.

On its website, ICICI Direct highlighted the strengths, opportunities and weaknesses for the stock.

Among the key strengths of Victoria Mills is that it has strong momentum as the share price is above short, medium and long-term moving averages. Also, it has strong annual EPS growth, while the company has no debt.

Further, among opportunities, the RSI is indicating price strength. However, the decline in net profit is seen as a weakness.

In the June 2023 quarter, the company's net profit stood at Rs 2.03 crore versus Rs 2.69 crore in Q4FY23. However, the Q1FY24 PAT was better compared to a loss of Rs 4.21 crore recorded in Q1FY23. But the company's revenue was at Rs 17 crore in Q1FY24 down from Rs 24.44 crore in Q4FY23. The company had nil revenue in the June 2022 quarter, as per the BSE filing.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, 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.