1000% Dividend Paying FMCG Stock: Ex-Date On 25th July; Buy To Be A Shareholder?

Under its primary brand "Kingfisher," United Breweries is a large-cap FMCG firm that operates in the breweries and distilleries industry. The largest beer producer in India is United Breweries Ltd., a division of the HEINEKEN company with its headquarters located in Bengaluru. Brands include Kingfisher Strong, Kingfisher Premium, Kingfisher Ultra, Kingfisher Ultra Max, Kingfisher Ultra Witbier, Kingfisher Storm, Heineken, Heineken Silver, Amstel, and Heineken 0.0 are among its varied product offerings. The firm manufactures and markets non-alcoholic drinks, globally renowned beer, and packaged drinking water and soda.

United Breweries Dividend Payment Date

"The Board has recommended the following dividend for the financial year ended March 31, 2024, subject to the approval of the shareholders of the Company at the ensuing Annual General Meeting (AGM):- Final dividend of Rs. 10.00 (Rupees Ten Only) per equity share of the face value of Re. 1 each (1000%). Accordingly, the dividend, if approved by the shareholders, will be paid on or before August 30, 2024," said the company in a regulatory statement.

United Breweries Date of AGM & Book Closure For Dividend

"The 25th AGM of the Company will be held on Thursday, August 01, 2024, at 01.00 P.M. (IST) through Video Conferencing/Other Audio-Visual Means in compliance with the applicable provisions of the Circulars issued in this regard by Ministry of Corporate Affairs and Securities and Exchange Board of India from time to time. Accordingly, the Register of Members and Share Transfer books shall be closed from Friday, July 26, 2024, to Thursday, August 01, 2024 (both days inclusive), for determining the eligibility of shareholders for payment of dividend, if approved by the shareholders at the AGM," the company informed to the market places.

United Breweries Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "UBL, currently trading at 2103 levels, is showing signs of a positive technical outlook. The stock has recently rebounded from the support levels around 1983 which is also close to 50 Day EMA levels, demonstrating its ability to maintain price stability. Notably, the stock has a minor resistance level at 2182, which is in proximity to previous all time high levels. If the stock manages to sustain a position above this mentioned resistance, it may pave the way for an upward movement towards the target level of 2323 and beyond. This is a positive development, as it signifies a potential change in the stock's trend."

"The Relative Strength Index (RSI), a momentum indicator, is currently trading at 61.66 levels. This RSI reading suggests a moderate level of strength in the stock, without being in overbought territory. It implies that there is room for the stock to potentially gather further momentum. The overall trend for UBL is sideways to Bullish, supported by various technical indicators, reinforcing the optimistic outlook," the analyst stated.

"Given these signals, there is a possibility for the stock to achieve a target price of Rs 2323 in the near term. It is advisable to consider buying on dips, particularly around Rs 2050, to capitalize on potential retracements in the stock price. To prudently manage risk, implementing a stop-loss (SL) at 1983 is recommended. This precautionary measure is crucial to safeguard investments in the event of an unexpected market reversal," Mandar Bhojane further recommended.

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.