Hello! We often keep you informed about companies that have announced corporate action. such as dividends. Who doesn't like to earn extra income?
So today we will tell you about 6 such companies whose ex-dividend dates are coming near.
The ex-dividend date is like a deadline. To be eligible for the dividend, investors must purchase the company's stock before the ex-dividend date, otherwise, they will not be eligible for the dividend.
The most important metric to find out about any company's dividend is the dividend yield.
The dividend yield is a ratio that shows how much dividend a company has paid relative to its market value.
To calculate a company's dividend yield, we divide the dividend per share by its current market price.
We have listed only those companies that have:
To calculate the dividend yield, we have considered the prices at the close of the market on Thursday, July 28, 2022.
We will cover the list in ascending order of dividend yield, i.e, the company that has the highest dividend yield will cover at the end. So let's start with today's dividend alert.
The first company that we are going to talk about is Voltamp Transformers Ltd.
Voltamp Transformers is a Vadodara-based company involved in manufacturing various types of oil-filled power and distribution transformers.
Apart from manufacturing, the company also provides services like assembly, commissioning, maintenance, and repair of transformers.
The company has declared Rs.35 Dividend per share and its ex-dividend date is 4th August i.e. if you own shares on or before 3rd August then you will be eligible for a dividend.
The dividend yield is around 1%.
Voltamp Transformers' strong focus on a diversified and quality client base is their biggest strength.
The company has a diverse clientele across various end-user industries such as oil refineries, textiles, chemical factories, automobiles, etc.
In return for maintaining a long-standing relationship with these clients over the years, the company has received a lot of repeat orders from them.
The biggest risk facing the company is the significant increase in the prices of their raw materials and increasing competitive pressure.
Copper, silicon steel, transformer oil, etc. are the major raw material for Voltamp Transformers Ltd.
But all these raw material prices continue to be highly volatile and the company's profitability is highly exposed to price fluctuations.
Let us now take a look at the financial and technical ratios of the company. We have also included the prices of 2 technical indicators so that you can see the stocks from a technical perspective.
We have used 2 indicators- 200 days simple moving average i.e. 200 days SMA and RSI (14).
If a company's stock price is trading above the 200 DMA, the stock can be considered bullish.
And if the price is trading down more than the 200 DMA then the stock can be said to be bearish.
Talking about the RSI, an RSI value below 30 is generally considered oversold, and a trend reversal is likely to lead to an uptrend.
Similarly, an RSI value above 70 is considered overbought, and a trend reversal is likely.
The other company is JK Lakshmi Cement Limited.
JK Lakshmi Cement started its cement business in 1982 and is a part of JK Group.
It is one of the leading cement companies in the northern, western and eastern regions of the country.
They have a cement manufacturing capacity of 11.80MTPA (Million Tonnes Per Annum) and their cement plants are located in Rajasthan, Gujarat, Haryana, Chhattisgarh, and Odisha.
Also Udaipur Cement Works Limited (UCWL), a subsidiary of JK Lakshmi Cement Limited, also has a capacity of 2.20 MTPA.
To do all this the company has a total consolidated cement capacity of 14 MTPA.
The company has declared Rs.5 Dividend per share and its ex-dividend date is 4th August i.e. if you own shares on or before 3rd August then you will be eligible for a dividend.
The dividend yield is up to 1.14%.
The biggest strength of the company is its backward integrated operations which help them to run an efficient business.
JK Lakshmi Cement India is the lowest-cost cement producer in terms of freight charges and power consumption.
Freight charge is the amount that companies pay to a carrier company for transporting goods from one point to another.
The company meets 75% of its electricity requirement through its captive power plants and also they have captive limestone mines which work out their input cost significantly.
The ongoing capacity expansion at Udaipur Cement Works Limited (UCWL) is a potential risk for the company in the near term.
The project is estimated to be worth ₹1650 crore and is expected to be funded in a 2:1 debt to equity ratio.
As this project is planned for commissioning in FY2025, the company will be exposed to project execution risk where the majority is from funding debt.
Any delay in the time of execution can have a direct impact on the financials of the company.
As you can see on your screen, we have shown some key financial and technical indicators of this company.
The third company is Abbott India Limited.
Abbott India is a leading multinational pharmaceutical company that the products manufactured by you are manufactured by a wide network of distributors in the country.
The company has a portfolio of 125 products in various therapeutic areas such as women's health, central nervous system (CNS), metabolism, vaccines, consumer health, etc.
The company's top 15 brands are in leadership positions in their respective segments and these Brands contribute to more than 80% of the company's core business.
It has declared Rs.145 final dividend per share and Rs.130 special dividend per share and the ex-dividend date is 2nd Aug. if you buy the shares on or before 1st Aug then you will be eligible.
The dividend yield is up to 1.39%.
Abbott India's biggest strength is its strong presence in the key therapy segment as well as the market-leading position of its top brands.
These factors have played a big role in the topline growth of the company and continue to do so.
The company has outperformed the Indian pharma industry's growth of 3.9% to grow its revenues from around 14.1% in FY2021-22.
Abbott India's strong business model has resulted in consistent financial performance for the company, resulting in double-digit margins over the last few years.
But one of the company's historically well-performing brands is seeing a slowdown.
As you can see, these 5 brands are among the top 10 performing brands of the company.
All brands have given double-digit growth except Duphaston, which is their gynecology brand. One may have to do with this increasing competition.
Mankind recently launched the product in competition with Duphaston, the way it is making a big impact on Abbott India.
As you can see on your screen, we have shown some key financial and technical indicators of this company.
The fourth company is Avanti Feeds Limited.
Avanti is a leading provider of high-quality shrimp feed as well as providing technical support to the farmers.
The company also exports shrimp feed. Shrimp feed i.e, shrimp meal. It is a very important component of shrimp production or farming.
They have a shrimp feed capacity of 6,00,000 MTPA out of which 60,000 MTPA processing facility is in Gujarat and the rest in Andhra Pradesh facility.
The company has declared an Rs. 6.25 dividend per share and its ex-dividend date are 4th Aug i.e. if you own shares on or before 3rd Aug then you will be eligible for the dividend.
The dividend yield is up to 1.4%.
Avanti Feeds is India's largest shrimp feed producer and commands a 45-50% market share in the domestic feed business.
To meet the growing export demand and strong market conditions, Avanti Feeds has pursued capacity expansion plans which will increase its capacity by 1,75,000 MTPA.
This expansion will further consolidate the company's market position. One of the challenges for Avanti Feeds is its dependence on the cost of raw materials.
If there is a sustained decline in global shrimp prices or a rise in the prices of soy meal, fish meat, and wheat meal flour, high shrimp feed prices will be ineffective for farmers.
And this could adversely affect India's shrimp aquaculture growth and the company's profitability going forward.
Let us now take a look at the financial and technical ratios of this company.
The 5th company is Kirloskar Oil Engines Limited.
Kirloskar Oil is one of the flagship companies of the Kirloskar Group.
The company is involved in manufacturing and servicing Diesel Engines and Diesel Generator Sets.
The company also manufactures diesel, petrol, and kerosene-based pump sets. Kirloskar Oil is India's largest industrial and agricultural engine and pump manufacturer.
It has declared Rs 2.50 dividend per share and its ex-dividend date is 3rd Aug i.e. if you own shares on or before 2nd Aug then you will be eligible for a dividend.
The dividend yield is up to 1.5%.
After the acquisition of a majority stake in La-Gajjar Machinery Pvt. has got a significant entry into the electric pump market.
The Company has received strong support from the Electric Pump segment of La-Gajjar Machinery even though the performance of the Industrial and Power Generation segment is not good.
Kirloskar Oil's biggest weakness is its exposure to the cyclicality of the end-user industry.
Due to the nature of the company's product, the growth potential is always tied to the capital expenditure or Capex of their end-users.
At the same time, the company's raw material costs account for 70% of the company's operating income.
In such a situation, high crude oil prices can put deep pressure on the margins of the company.
As you can see on your screen, we have shown some key financial and technical indicators of this company.
The last company on the list is Bata India Limited.
Bata India is the largest shoe manufacturer in India. The company is involved in the manufacturing and selling of footwear such as canvas, rubber, leather, and plastic materials.
It has declared Rs. 4 final dividends per share and a special dividend of Rs 50.50 per share and its ex-dividend date is 4th Aug, if you are its shares on or before 3rd Aug then you will be eligible
The dividend yield is up to 2.87%.
Bata India has ₹1,000 crores in cash and other liquid investments as of March 2022.
The company has utilized only internal funds for its capital expenditure. Due to zero debt and low financial costs, the company has been able to maintain a healthy debt coverage.
A major threat to Bata India is the intense competition they are facing.
Existing players are setting up new manufacturing facilities and on the other hand, new players are entering through the channel of e-commerce, which has increased the competition in the industry.
Moreover, foreign brands such as Clarks, Zara, and others have also entered the organized footwear market in India.
These factors will have an impact on the company's pricing power.
Let us now take a look at the financial and technical ratios of this company.
So these were those 6 companies whose ex-dividend date is near, and whose dividend yield is more than 1%.
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