Textile Stock: 150% Dividend Recommended; Are You An Eligible Investor For The Payout?

Among the leading manufacturers of lifestyle outerwear and innerwear in India, Dollar Industries Limited offers a wide variety of knitted garments, ranging from casual wear to outerwear. Since its founding, the firm has expanded its market outside India, establishing itself in nations such as the UAE, Oman, Jordan, Qatar, Kuwait, Bahrain, Yemen, Iraq, Nepal, and Sudan.

Dollar Industries Dividend

The Board of Directors has recommended a dividend of Rs 3 per share, subject to shareholders' approval, which is 150% of the face value, said Dollar Industries in a regulatory filing.

Dollar Industries Financials

The firm posted its highest-ever total income of Rs 50,204 Lacs for the fourth quarter of FY24, representing a gain of 23.2% YoY. In Q4 FY24, its gross profit was Rs 15,305 Lacs, up 53.6% YoY, while its gross margin climbed 609 basis points to 30.6% YoY. Its EBITDA surged by 372.0% year on year to Rs 5,924 Lacs in Q4 FY24, and its EBITDA margin expanded by 872 basis points to 11.8%. In Q4 FY24, the firm reported a net profit of Rs 3,309 Lacs, up 5911.8% YoY from Q4 FY23 PAT of Rs 55 Lacs. PAT margin was 6.6%, up 646 basis points YoY.

"The company remains steadfast in its commitment towards continued growth and success of Project Lakshya, and we have added 61 distributors under this project in FY24. The contribution of Project Lakshya distributors stood at 26.3% in FY24, up from 18.6% in FY23. We target Project Lakshya distributors to contribute 65-70% of our revenue by FY26, and this will go a long way in increasing our market share and improving margins. Our company is experiencing robust demand and an increasing proportion of higher-margin products in our portfolio. This positive trend positions us well to achieve our desired topline and bottom-line growth in the near future," said Mr. Vinod Kumar Gupta and Mr. Binay Kumar Gupta, Managing Directors, Dollar Industries Limited.

Dollar Industries Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "DOLLAR is currently trading at 592.3 levels, having experienced profit booking from its all-time high of 659.95 The stock finds robust support near 558 levels aligned closely with its 50-day Exponential Moving Average (EMA) levels, indicating potential buying interest at these levels. However, investors holding the stock from lower levels are advised to book profits, as the stock is now trading near to its short-term (20 Day) EMA levels. For investors considering fresh entry into DOLLAR, it is prudent to await a reversal in the stock's price action."

"A breakout above Rs 611 could propel the stock towards the Rs 644 and Rs 666 level. On the flip side In the event of a breakdown below the mentioned support of 558, the stock may witness further correction towards the 544 levels. This approach balances the potential for buying opportunities above breakout levels, while also recognizing the need for caution amid the stock's current profit booking at higher levels. Investors should monitor price movements closely and adjust their strategies accordingly to navigate DOLLAR evolving market dynamics," the analyst commented.

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.