Rs. 22.50 Per Share Dividend: Buy The Consumer Discretionary Stock Ahead of Record Date?

Consumer discretionary company HIL Ltd. has released its financial results for the quarter and year that ended on March 31, 2024. The US$2.9 billion company additionally recommended a dividend of Rs. 22.50 per share for FY24; the record date will be disclosed soon. HIL is a leader in home and building solutions, providing high-quality, cutting-edge solutions to meet the constantly changing demands of clients across the world.

HIL Dividend

The Board of Directors "Recommended a final dividend of Rs. 22.50/- (i.e. 225%) per equity share of Rs. 10/- each for the financial year ended March 31, 2024, subject to the approval of shareholders at the ensuing Annual General Meeting (AGM) of the Company. The said final dividend if approved by the shareholders, shall be paid/dispatched to the shareholders within 30 days from the date of declaration. Further, the Company had declared an interim dividend of Rs. 15/- (i.e. 150%) per equity share of Rs. 10/- each, during the previous quarter of the financial year 2023-24, totaling the dividend amount to Rs. 37.50/- (i.e. 375%) per equity share of Rs. 10/- each for the financial year 2023-24. Record date for the purpose of payment of final dividend and date of 77th Annual General Meeting of the Company will be informed in due course," said HIL in a regulatory filing.

HIL Financials

Hil recorded a net loss of Rs 0.11 crore for the quarter that ended in March 2024, compared to a net profit of Rs 4.62 crore for the quarter that ended in March 2023. Revenue for the quarter ending March 2024 was Rs 852.01 crore, down 1.30% from the year-ago quarter's Rs 863.27 crore. EBITDA for the firm decreased by 31% year on year to Rs 28 Cr in Q4FY24 from Rs 41 Cr in Q4FY23.

"FY24 will be remembered as the year where we laid the foundation for a "Reimagined HIL". We renewed our growth push in line with our strategic plan and ambition to be a USD 1 Bn company over the next 3-4 years. The acquisition of Topline, and the resultant doubling of our Pipes & Fitting business, was a major milestone. We have changed the paradigm of our branding efforts and reenergized our product innovation engine. Value mining for enhanced profitability has been established as a key organizational priority. Our most decisive steps have been towards building the organization for tomorrow.

We have strengthened our leadership team, moved towards a digital led way of working and are building a culture of excellence. These steps, I am sure, points to an exciting FY25 and beyond for HIL. Overall, we delivered steady performance in FY24, with robust volume growth across most product segments. This was achieved in the context of a modest demand scenario and intensifying competition. Hence pricing pressures remained throughout the year, including in our polymer business where record low PVC prices presented additional complexities. Our relentless focus on driving operational efficiencies and continuous improvement in cost structure meant our profitability improved across most of segments," said the CEO of the company.

HIL Share Price Target

KKunal V Parar - VP of Technical Research and Algo at Choice Broking said, based on the current analysis, the stock shows promising signs for a potential bounce-back move.

Firstly, on a weekly chart, we observe a significant shift in the 2450 level from acting as strong resistance to now serving as robust support. This reversal indicates a notable change in market sentiment, likely fostering upward momentum in the stock.

Additionally, the stock appears to be trading near the lower boundary of a descending triangle formation on the weekly chart. Historically, such patterns often precede bullish reversals, suggesting further potential for upward movement.

Furthermore, the Relative Strength Index (RSI) on the weekly chart is trending along a strong upward support line. This indicates positive momentum and suggests underlying strength in the stock's price action.

Considering these technical indicators, we anticipate a substantial bounce-back in the stock, supported by the strong 2450 level. Our projected upside targets range between 2730 and 2900, reflecting the potential for significant gains.

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.