Sugar stock jumps on record day for dividend payout

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Dividend-paying stocks: EID Parry shares have remained under pressure since the start of the new year 2022. However, the sugar company’s board recently announced an interim dividend which served as a short-term trigger for EID Parry shares. According to stock market experts, the Indian government’s ethanol blending policy will help sugar companies in the long run. Thus, this stock could continue to expand northward and rise to 530 levels each over the next 6 months, according to stock market experts.

Speaking on the triggers for the rally in EID Parry shares; Rohit Singre, AVP at Bonanza Portfolio, said: “EID Parry is a sugar stock and it recently announced an interim dividend which worked as a short-term trigger for its share price to rise. However, the Indian government has announced its ethanol blending policy which will increase the business volume of sugar companies in India. Thus, EID Parry will benefit from this policy of the Indian government in the long term. Therefore, one can buy these shares in the medium to long term.

On what the chart diagram suggests regarding EID Parry stocks; Sumeet Bagadia, Executive Director of Choice Broking, said: “High risk traders can buy EID Parry at current levels as the stock rebounds from correction. You can buy at current levels for 430 to 450 levels. After passing this target, it can become very bullish. Therefore, those with a long time horizon can also hold the stock for a long time.

On his suggestion to positional investors regarding EID Parry shares, Bonanza Portfolio’s Rohit Singre said, “EID Parry has strong support at 390 levels and those who have this stock in their portfolio are advised to hold this sugar stock by holding the stop loss at 390. However, for those who want to buy this stock, it is advisable to wait for a little more rise in the meter and buy above 425 for a 6-month goal of 500 to 530 levels each.”

In its exchange communication, EID Parry had announced the second interim dividend. According to information available on the ESB website, “EID Parry India Ltd has informed the ESB that the Board of Directors of the Company, at its meeting on February 28, 2022, declared a second interim dividend of Rs. 5.50/- (Five Rupees Fifty Paise only) per share (550%) of par value Re. 1/- each for the year ended 31 March 2022.” The registration date for the interim dividend has been set for March 11, 2022.

Warning: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.

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