700% Dividend: 3rd September Record Date; Buy To Be A Shareholder of Specialty Chemical Stock?

One of the largest manufacturers of organic and speciality chemical intermediates is Vinati Organics Limited (VOL). The firm is present in more than 35 nations worldwide. The company, which started out as a single-product manufacturer but has now grown into an integrated enterprise, supplies a broad range of products to some of the largest chemical and industrial corporations in the US, Europe, and Asia. On Friday, the shares of Vinati Organics ended 0.03% higher at Rs 1987.20 apiece with a market cap of Rs 20,600.43 Cr on BSE.

Vinati Organics Dividend

"The Board of Directors has recommended a dividend of Rs 7/- (Rupees Seven only) per equity share i.e. 700% on the equity shares of the face value of Rs 1/- (Rupees One) each. The final dividend on equity shares, if approved by the Members, would involve a cash outflow of Rs 7,256.59 lakh. The dividend on Ordinary (equity) Shares is subject to the approval of the Shareholders at the Annual General Meeting ('AGM') scheduled to be held on Tuesday, September 10, 2024 and if declared, will be paid, subject to deduction of tax at source ('TDS'), within 30 days from the date of declaration at the AGM," said the company in a statement.

"The remote e-voting period begins on Friday, September 06, 2024, at 09:00 A.M. and ends on Monday, September 09, 2024, at 05:00 P.M. The remote e-voting module shall be disabled by NSDL for voting thereafter. The Members, whose names appear in the Register of Members / Beneficial Owners as on the record date (cut-off date) i.e. Tuesday, September 03, 2024, may cast their vote electronically. The voting right of shareholders shall be in proportion to their share in the paid-up equity share capital of the Company as on the cut-off date, being Tuesday, September 03, 2024," Vinati Organics informed stock exchanges.

Vinati Organics Results

Vinati Organics' net profit jumped by 21.27% to Rs 84.16 crore in the quarter that ended in June 2024 from Rs 69.40 crore in the quarter that ended in June 2023. Sales surged 19.60% to Rs 524.71 crore in the June 2024 quarter compared to Rs 438.73 crore in the June 2023 quarter.

Vinati Organics Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "VINATIORGA is currently in a consolidation phase after a strong upward rally after a small correction, with a current market price (CMP) of 1,990. The price is hovering near the 50-day EMA at 1,993, which has served as a key support level. Recent candlestick patterns, featuring lower wicks, suggest potential stabilization and indicate buying interest around the current price levels. The Relative Strength Index (RSI) stands at 44, reflecting a neutral market sentiment. The stock has immediate support at 1,970, with a stronger support level around 1,870."

"On the upside, the stock faces resistance at 2,059 which is also close to its 20 Day EMA levels, which it needs to breach to continue its upward momentum. Overall, VINATIORGA appears to be stabilizing within its consolidation phase, with solid support levels providing a safety net for the price. The neutral RSI suggests that the stock could be poised for an upward move. Investors should monitor the stock for a breakout above the 2,059 resistance level to confirm renewed bullish momentum," the analyst further commented.

Disclaimer

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