Specialty Chemical Stock Jubilant Ingrevia Sets Record Date For 250% Dividend

Jubilant Ingrevia Ltd is a mid-cap company which deals in the speciality chemical sector. The stock rallied over 2% on Tuesday afternoon deals after the company declared record date for a 250% final dividend for FY23.

Jubilant Ingrevia Dividend

"In terms of Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, it is hereby informed that the Company has fixed Thursday, August 10, 2023 as the "Record date" for the purpose of ascertaining the eligibility of members for payment of final dividend of @ Rs. 2.5 per share (250%) on equity shares for the financial year 2022-23. The final dividend, if approved by the members in the forthcoming AGM, will be paid to the eligible members within the stipulated period of 30 days from the date of AGM, said Jubilant Ingrevia in a stock exchange filing.

Jubilant Ingrevia has announced an equity dividend of 500.00% at a face value of Rs 1, or Rs 5 per share, for the financial year ended March 2023. The dividend yield at the current share price of Rs 424.45 is 1.18%. Jubilant Ingrevia Ltd. has issued 4 dividends since August 5, 2021, according to Trendlyne statistics.

Jubilant Ingrevia Financials

The company recorded a net revenue of Rs 1,075 Cr in Q1FY24 compared to Rs 1,166 Cr in Q1FY23 recording a drop of 8% YoY even though the revenue dropped sequentially by 6% QoQ from Rs 1,145 Cr recorded in Q4FY23.
The company's EBITDA reached Rs 125 Cr in June 2023 quarter down by 17% YoY from Rs 151 Cr recorded in the quarter ended June 2022, however, EBITDA grew by 13% QoQ from Rs 111 Cr recorded in the quarter ended March 2023.

The net profit of Jubilant Ingrevia stood at Rs 58 Cr in Q1FY24 down by 27% YoY from Rs 79 Cr in Q1FY23, however, PAT grew by 10% QoQ from Rs 52 Cr posted in Q4FY23.

The EPS of Jubilant Ingrevia dropped to Rs 3.6 in Q1FY24 compared to Rs 3.3 in Q4FY23 and Rs 5.0 in Q1FY23.

Commenting on the Company's performance, Mr. Shyam S Bhartia, Chairman and Mr. Hari S Bhartia, CoChairman, Jubilant Ingrevia Limited said, "We are pleased to announce stable performance in Q1'FY24, given the backdrop of depressed market conditions specifically in Agrochemical end use markets. In our Specialty Chemicals Business, demand from our Agrochemical customers globally continue to face headwinds due to exceptionally higher pipeline inventories. However, demand from our Pharmaceutical and other customers has improved leading to improved price realization and margins from these products including CDMO."

"In our Nutrition & Health Solution Business, Niacinamide sales volumes improved significantly, resulting into revenue growth. We continue to witness improved price realisation due to higher demand in the segment. Business continue to maintain global leadership position in Niacinamide and focus on Niche segments like Food & Cosmetics.

In our Chemical Intermediates Business, we continue to improve our market share of key product Acetic Anhydride, despite the challenges of lower demand from Agrochemical end-use segment. We also witnessed lower price realisation in the segment due to pricing pressure from Agro end-use of Acetic Anhydride and lower realisation of Ethyl Acetate in Exports market. We are witnessing softening of coal prices and with that our overall energy cost is expected to normalise. We remain committed towards our growth plans and are confident that our well defined capex plan will deliver structured growth in the future as planned," the management further added.

Jubilant Ingrevia Share Price

On Tuesday the shares of Jubilant Ingrevia opened on the BSE at Rs 413.05 apiece and during the afternoon deals the scrip was trading at Rs 423 with an upside gap of 1.96% over the previous close. The stock made a 52-week-high of Rs 592.45 on (11/11/2022) and a 52-week-low of Rs 350.80 on (29/03/2023). During Q1FY24, the company recorded promoter shareholding of 51.47%, FIIs stake of 6.15%, DIIs stake of 6.72%, public stake of 34.83% and others stake of 0.82%.

Jubilant Ingrevia Share Price Target

Om Mehra, Equity Technical Analyst · Choice Equity Broking said, "After decent correction, the stocks seem to be in the accumulation phase. Past few weeks it has been trading within a range of 400-435. The indicator as Rsi remains in the neutral zone. However, the price has managed to trade above 20 and 40 EMA. Also stock is sustaining above the middle Bollinger band.

Although larger time frame analysis reveals some weakness, the entry point above 435-440 levels, which aligns with the 38.2 per cent Fibonacci retracement, provides an enticing opportunity for long-term investors. On the other hand, short-term traders should be cautious due to potential price fluctuations. As with any investment decision, thorough research and consultation with a financial advisor are recommended to ensure a comprehensive understanding of the stock's potential and risks."

Disclaimer

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