Piramal Enterprises shares turn ex-date for dividend of Rs 31 today; what should investors do?

Shares of Piramal Enterprises Ltd are in focus after the stock will turn ex-dividend today. The board of Piramal Enterprises had declared a final dividend of Rs 31 per share and the total dividend pay-out would be Rs 740 crore. 

The Board of Directors of Piramal Enterprises recommended the dividend during earnings announcement for the March 2023 quarter and fiscal on May 5 this year. Piramal Enterprises stock ended flat at Rs 800.85 in the previous trading session on BSE.   

Stock of Piramal Enterprises has lost 11.25% in a year and fallen 3.33% in 2023. Total 1 lakh shares of the firm changed hands amounting to a turnover of Rs 8.08 crore on BSE. Market cap of the firm stood at Rs 19,113 crore on Thursday.               

The stock hit a 52-week high of Rs 1202.73 on August 25, 2022 and a 52 week low of Rs 630.20 on March 28, 2023.  Currently, the stock stands 61.58% lower than its 52-week high of Rs 1202.73.  

In terms of technicals, the relative strength index (RSI) of the stock stands at 66, signaling the stock is neither oversold nor overbought. Piramal Enterprises has a one-year beta of 0.6, indicating low volatility during the period. Piramal Enterprises shares are trading higher than the 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.  

The dividend is subject to the shareholders' approval at the 76th Annual General Meeting.  

Abhijeet from Tips2trades said, "Piramal Enterprises looks bearish on the daily charts with strong resistance at Rs 812. A daily close below support of Rs 784 could lead to a target of Rs 740 in the near term."  

Vaibhav Kaushik, Research Analyst, GCL Broking said, "Piramal Enterprises looks good. After pause in interest rates as well WPI inflation is negative. This will create more demand leading to credit growth in the market. Bottom line as well top line growth can be maintained at higher levels. Our target is Rs 1000 in the medium term."

Gaurav Bissa, VP, InCred Equities said,"The stock has been trading in downtrend on the weekly charts with clear formation of lower highs and lower lows. The stock has been trading below its 55 ema on the weekly charts since the start of 2022 implying the stock can witness increased pressure on any upside in the medium term. The stock has reversed from descending channel resistance on the weekly charts and is expected to touch Rs 730 levels in the coming days."

V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today said, "Piramal Enterprises (PEL) announced a final dividend of Rs 31 per share (almost 4% of CMP) which will be paid on July 30 and today is record date for the same. Currently price is trading at Rs 785 and last quarter low was Rs 630.45. So, in the last 3-4 months, it has given a return of almost 30%. So, those who are already in this stock, can keep holding with a stop loss of Rs 710. Keep target expectation of 835/850/880/910 and 950 in the near term. Fresh long position can be initiated above Rs 788 levels for above given targets and stop loss levels."

Piramal Enterprises reported a net loss of Rs 196 crore for the quarter ending March 31, 2023 against net profit of Rs 109 crore in the year-ago period. The company's consolidated revenue from operations declined 9% to Rs 2,132 crore in Q4FY23 as against Rs 2,347 crore in Q4FY22.  Operating profit fell 31% to Rs 813.37 crore for the quarter ended March 2023 against Rs 1176.29 crore in the corresponding quarter of the previous fiscal.     

In the last fiscal, sales zoomed 15.65% to Rs 8934.30 crore against sales of Rs 7725.50 crore in the previous fiscal. Net profit zoomed 418.31% to Rs 9967.58 crore in FY23 against Rs 1923.11 crore in the previous fiscal. However, operating profit slipped 74% to Rs 1500.42 crore for the March 2023 fiscal against Rs 5741crore in the previous fiscal.     

After the Q4 earnings, brokerage Motilal Oswal assigned a target of Rs 1,000 to the stock, indicating an upside of 36% to the market price of Rs 736 on May 6.  

“We estimate a 19% AUM CAGR over FY23-25, including further moderation in the wholesale book and a 42% CAGR in retail AUM over the same period. With a high capital adequacy of 31% and proceeds from a potential stake sale in Shriram Finance later this year, PIEL will have its task cut out to decide whether to utilise the excess capital on the balance sheet for any inorganic opportunities or find means to return it to shareholders. Retain BUY with a target price of Rs 1,000 (premised on Mar'25E SoTP),” said the financial services firm.  

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