Rs 2.50/Share Dividend By Maharatna PSU Stock: July 26 - Record Date; Buy/Sell/Add?

Power Finance Corporation Ltd. (PFC), a schedule-A Maharatna CPSE and one of the nation's top non-banking financial corporations, was founded on July 16th, 1986. PFC has regional offices in Mumbai and Chennai in addition to its registered office in New Delhi. The Ministry of Power has administrative control over PFC. Given that PFC India has announced the record date for its upcoming dividend of Rs 2.50, the Maharatna PSU stock is expected to remain in the spotlight going forward.

Power Finance Corporation Upcoming Dividend

"Pursuant to the Regulation 42 of SEBI (listing Obligation and Disclosure Requirements) Regulations, 2015 it is hereby informed that the Record Date has been fixed as Friday, July 26, 2024 for the purpose of ascertaining the entitlement of members for payment of Final Dividend of Rs 2.50/- per equity share on the face value of Rs 10/- each on the equity shares of the Company for the FY 2023-24 as recommended by the Board of Directors of the Company in its meeting held on June 15, 2024. If the final dividend as recommended by the Board of Directors is approved at the ensuing Annual General Meeting, payment of such dividend subject to the deduction of tax at source, will be made within 30 days from the date of approval of the shareholders in the ensuing Annual General Meeting," said Power Finance Corporation in a stock exchange filing.

How To Avoid TDS On Power Finance Corporation Dividend?

"It is to further mention that as per provisions of Income tax Act, 1961, dividend income is taxable in the hands of shareholders and the Company is required to deduct tax at source (TDS) at the time of making payment of dividend, at the rates prescribed in the Income Tax Act, 1961. However, in case a shareholder wants that his/her tax should be deducted at lower rates or no tax should be deducted in accordance with Income tax Act, 1961, then he/she should submit scanned copy of PAN, form 15G/15H & other requisite documents for the financial year 2023-24," the company informed to stock exchanges.

Power Finance Corporation Share Price Target

KKunal V Parar - VP of Technical Research and Algo at Choice Broking said, "On the daily chart, the stock has formed a Bearish Engulfing candlestick pattern, which is a bearish reversal formation, indicating potential downside movement. However, the stock is trading above its 50-day moving average, suggesting a positive trend in the medium term."

"Additionally, the stock is in uncharted territory, which indicates a positive rhythm. The daily momentum indicator, RSI, is trending above the 50 mark, pointing to positive market sentiment. Based on this technical structure, we expect a significant upside move in the medium term, with target levels ranging from 600 to 660. Downside support is observed at 510," KKunal V Parar further stated.

"Non-banking financial company Power Finance Corp's current price level serves a solid entry point for mid-to-long-term investors. For this stock, I recommend a buying range of Rs. 530-560 for a target price of Rs. 600-850. However, traders and investors must consider setting a stop loss at Rs. 480 to limit exposure to risks. I would recommend a holding period of 3- 10 weeks for this stock as its robust market standing and business prospects demonstrate the potential to deliver promised returns, especially in the current market conditions," V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) commented.

Disclaimer

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