Navratna PSU Stock To Buy For Final Dividend of Rs.1.50/Share; Are You Eligible For The Payout?

NLC India Limited has led the nation's public sector enterprises in the energy industry for more than six illustrious decades. Under the administrative direction of the Ministry of Coal, NLC India is a Navratna Government of India Enterprise. The states of Tamil Nadu, Rajasthan, Uttar Pradesh, Odisha, Jharkhand, Gujarat, and the Andaman & Nicobar Islands are now home to the company's PAN India service. Should they purchase the stock? The PSU Navratna stock has announced a final dividend of 15% for FY24 for eligible shareholders.

NLC India

The Board of Directors considered and approved the "Recommendation of Final Dividend of 15.00 % (i.e., Rs.1.50 per equity share) for the Financial Year 2023-24, subject to C&AG Audit and approval of Members in the ensuing Annual General Meeting. The details of closure of Register of Members and Share Transfer Books and date on which the said final dividend shall be paid/dispatched will be intimated in due course after fixing the date of Annual General Meeting," said NLC India in a regulatory filing.

"Apart from the Interim Dividend of 15% (Rs. 1.5 per share) on paid up equity share capital already declared and paid, Final Dividend of 15% (Rs. 1.5 per share) on paid up equity share capital recommended for FY 2023-24 subject to approval of shareholders in the Annual General Meeting," the company further informed to the exchanges.

NLC India Financials

On a standalone basis Profit After Tax (PAT) for the year that ended on March 31, 2024, was Rs. 1,847 crore, up 48% from Rs. 1,248 crore during the same period the year prior. Profit Before Tax (PBT) jumped by 62% to Rs. 2,788 crore at year's end on March 31, 2024, from Rs. 1,724 crore during the same time the previous year. In the past ten years, this PBT has been the highest to date. The company's EBITDA for the year that ended on March 31, 2024, was Rs. 4,873 crore, up 25% from Rs. 3,899 crore during the same period the year before.

The company's net profit for the year ended March 31, 2024, on a consolidated basis, was Rs. 1,868 crore, up 31% from Rs. 1,426 crore in the same period the year before. Profit before tax for the year that ended on March 31, 2024, was Rs. 2,882 crore, up 40% from Rs. 2,056 crore during the same period the year before. The company's EBITDA for the year that ended on March 31, 2024, was Rs. 5,556 crore, up 14% from Rs. 4,868 crore during the same period the year prior.

NLC India Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "NLCINDIA has maintained a sideways trend within the 240-200 range for an extended period, reflecting consolidation in its price action. Currently trading at 227 levels, the stock faces immediate resistance at the upper bound of this range, signalling a potential reversal if breached. However, the stock's short-term outlook appears weak as it trades below both the 20-day and 50-day Exponential Moving Averages (EMAs), suggesting a lack of momentum in the near term. Nonetheless, a notable support level resides near 200 levels, providing a foundation for price stability."

"A decisive breakout above the resistance at 240 could trigger a bullish momentum, potentially propelling the stock towards the 265 levels. Conversely, failure to breach this resistance might lead to further downward pressure on the stock. Traders holding positions from lower levels are advised to consider booking profits, while fresh investment should be approached cautiously, with entry points preferably above the 240 resistance level to mitigate downside risks associated with the on-going consolidation phase," the analyst further commented on the stock outlook.

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.