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Analyzing Dividend Declarations: ITC, Bhansali Engg Polymers, and HPCL in Focus

7th February, 2024| By Business Desk
Bombay Stock Exchange Building
Bombay Stock Exchange Building | Credit: Wikimedia Commons
  • ITC Limited declared an interim dividend of Rs 6.25 per share for the financial year 2023-24 during a board meeting held on January 29, 2024. The dividend is scheduled to be paid between February 26 and 28, 2024, with a record date set for February 08, 2024.
  • Despite flat revenue growth, ITC reported a significant 13% increase in net profit for the quarter ended December 31, 2023, reaching Rs 5,572 crore. This reflects the company’s resilience and ability to maintain profitability in challenging market conditions.
  • ITC shares experienced a slight decline of 0.44% on February 5, 2024, with a 3.70% decrease over the last six months. However, the stock has delivered an impressive return of over 15.98% in the last twelve months, indicating long-term growth potential.
  • Bhansali Engg Polymers Limited, a small-cap petrochemical company, declared a dividend of Re 1 per share with a high dividend yield of 12.4%. Despite a decline in revenue, the company saw a significant 19.8% increase in profit for Q3 FY24.
  • Hindustan Petroleum Corporation Limited (HPCL), an Oil Marketing Company (OMC), announced a dividend of INR 15 per share with a dividend yield of 2.8%. HPCL’s stock surged 26% in the last month, presenting a promising investment opportunity in the energy sector.

In the realm of corporate finance, the declaration of dividends and the unveiling of financial results hold significant weight, guiding investors’ decisions and shaping market sentiments. Recently, ITC Limited, a diversified FMCG company, made headlines with its interim dividend announcement during a board meeting convened on January 29, 2024. Simultaneously, other high-yielding stocks, including Bhansali Engg Polymers Limited and Hindustan Petroleum Corporation Limited, are also slated to go ex-dividend this week.

ITC’s interim dividend declaration for the financial year 2023-24 stands at Rs 6.25 per ordinary share of Rs 1/- each. Scheduled to be paid between Monday, February 26, 2024, and February 28, 2024, this move underscores the company’s commitment to rewarding its shareholders amidst a backdrop of robust financial performance. The record date for entitlement to the interim dividend has been fixed as February 08, 2024.

In its financial report for the quarter and nine months ending December 31, 2023, ITC showcased resilience amid dynamic market conditions. Despite a flat growth in revenue, the company witnessed a notable 13% increase in net profit, reaching Rs 5,572 crore for the quarter ended December 31, 2023. This performance underscores ITC’s adeptness in navigating challenges while sustaining profitability.

As of February 5, 2024, the closing market price for ITC shares stood at Rs 438.15, reflecting a slight decline of 0.44%. Over the last six months, ITC shares have experienced a 3.70% decline, indicating fluctuations in investor sentiment. However, zooming out to a broader timeframe, the stock has delivered an impressive return of over 15.98% in the last twelve months, bolstering investor confidence in the company’s long-term prospects.

On a parallel track, Bhansali Engg Polymers Limited, a petrochemical company, stands out as a high-dividend-yielding stock in the small-cap space. With a market capitalization of INR 2,624 crore, the company reported a revenue of INR 301.5 crore in Q3 FY24, accompanied by a 19.8% increase in profit to INR 40.21 crore. Despite a 12.9% YoY decline in revenue, Bhansali Engg Polymers maintains its allure with a dividend yield of 12.4%.

The company has declared a dividend of Re 1 per share, with the ex-date set as 7 February 2024. This dividend announcement not only underscores Bhansali Engg Polymers’ commitment to shareholder value but also positions it as an attractive investment option in the small-cap segment.

In the energy sector, Hindustan Petroleum Corporation Limited (HPCL) emerges as a compelling investment avenue. With a market capitalization of INR 72,151 crore, HPCL, along with other Oil Marketing Companies (OMCs), has witnessed a surge in market activity, with the stock soaring 26% in the last month. Despite this bullish trend, HPCL continues to trade at a TTM P/E ratio of 4.27, presenting an opportune entry point for investors.

HPCL currently offers a dividend yield of 2.8% and has declared a dividend of INR 15 per share. The ex-dividend date is set for 7 February 2024, with the payment date scheduled for 23 February 2024. This dividend declaration, coupled with HPCL’s promising financial performance, solidifies its position as a lucrative option for long-term portfolios, reflecting stability and growth potential in the energy sector.

In summary, the recent flurry of dividend declarations and financial disclosures by prominent companies such as ITC Limited, Bhansali Engg Polymers Limited, and Hindustan Petroleum Corporation Limited underscores the dynamic nature of the market. While ITC’s interim dividend announcement reflects the company’s commitment to shareholder value amidst robust financial performance, Bhansali Engg Polymers and HPCL present attractive investment opportunities with their high dividend yields and promising growth trajectories. As investors navigate the complex terrain of the financial markets, these dividend-paying stocks stand out as beacons of stability and potential for long-term wealth creation.