Dividend Announced Upto Rs.18, Stocks With Strong Q4 Revenue: 'Buy' Says Motilal Oswal

The Sensex and Nifty have closed marginally bearish today, however, the 2 below listed stock prices have gained in the NSE today. These 2 companies have recently announced financial reports and announced a dividend for investors. Brokerage firm Motilal Oswal has picked these 2 stocks and given buy rating.

Galaxy Surfactants (GALSURF)

Galaxy Surfactants's revenue stood at Rs. 10.5b (up 34% YoY and 13% QoQ). The EBITDA came in at Rs. 1.5b, increased 23% YoY and 90% QoQ higher than Motilal's estimate. The company's gross margin stood at 33% (up 550bp QoQ), with EBITDAM at 13.8% in 4QFY22 (est. 8.3%). In FY22, revenue gained 32% YoY at Rs. 36.9b, PAT at Rs. 2.6b (-13%). GALSURF has declared a final dividend of Rs. 18/share in FY22.

Renowned brokerage firm Motilal Oswal has given a buy status to this stock. The share price of Galaxy Surfactants (GALSURF) is gaining sharply on the NSE. On May 18, the company's share price closed at Rs. 2695, gaining by 3.62%. In the intra-day trading, the opening price was Rs. 2668, and the share price even reached Rs. 2820/ share today. The 52 week low level of the stock is Rs. 2,585.00 (17-May-2022), and the 52 week high level of the stock is Rs. 3,585.65 (15-Sep-2021).

NOCIL

NOCIL's net profits have increased 84.62% YoY to Rs. 68.92 crore in Q4 FY2022, as against Rs. 37.33 crore in Q4 FY2021. The company's revenue came in higher than Motilal's estimate at Rs. 4.6b (+44% YoY, +19% QoQ). Its sales gained 43.71% YoY to Rs. 462.74 crore in Q4 FY2022, as against Rs. 321.99 crore in Q4 FY2021. Gross margin expanded QoQ to ~50%. PAT stood at Rs. 685m (+90% YoY, +129% QoQ), NOCIL's EBITDA margin was at 23.9% (v/s 12.8%/15.6% in 3QFY22/4QFY21). The company's EBITDA stood at Rs. 1.1b (+120% YoY, +121% QoQ). Additionally, NOCIL has declared a final dividend of Rs. 3/share for FY22.

Reputed brokerage firm Motilal Oswal has also given a buy rating to this said company stock. The share price of NOCIL is gaining sharply on the NSE. On May 18, the company's share price closed at Rs. 254.65, gaining by 4.67%. Yesterday, the closing price was Rs. 243.30/share. In the intra-day trading, its share price even reached Rs. 264.95/ share today. The 52 week low level of the stock is Rs. 190.70 (24-FEB-22), and the 52 week high level of the stock is Rs. 321.30 (12-OCT-21).

What are dividend, ex-dividend date, and record date?

A dividend is the portion of a listed company's profits that the company announces to pay to its shareholders. Eligible shareholders will be able to receive these additional profits along with their returns. The Board of Directors of the company announces the dividend, the size of the dividend, the record date, along with the payment date. The company also announces the ex-dividend date, which means an investor is required to buy the stocks before that particular date to get the dividend. If an investor buys the stock on the ex-dividend date or after, the company will get the dividend. Additionally, the record date is known as the date, the day by which one investor should be on the company's shareholders' book in order to get the dividend. By announcing the record date and ex-dividend date of the dividend, companies try to attract more investors from the market. So, investors should keep the reports of company board meetings for any dividend announcement.

Disclaimer

The above stocks were picked from the brokerage report of Motilal Oswal. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

(Also read: Stock To Buy: Sharekhan Says This Stock Can Gain 20%, Company Offers ~6% Dividend Yield)