Indian stocks trading ex-dividend today are showing notable activity among key players such as NMDC Ltd, the Indian Railway Finance Corporation (IRFC), and CG Power and Industrial Solutions Ltd. On March 21, 2025, investors eagerly anticipated dividend payouts from these companies, marking a significant day in the stock market.
Among the standout dividend announcements, state-run metal and mining giant NMDC Ltd declared an impressive dividend of 230 percent, or Rs 2.3 per share. This represents a solid return for shareholders and reflects the healthy performance of the company in recent quarters. NMDC's stock opened at Rs 66.60, showing strong investor interest as it turned ex-dividend.
In the fiscal quarter ending December 31, 2024, NMDC reported a significant net profit surge of nearly 29 percent year-over-year (YoY), totaling Rs 1,896.7 crore. The revenue for this period also showcased robust growth, rising by 21.4 percent YoY to Rs 6,568 crore. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) reached Rs 2,372 crore, reflecting an 18.2 percent growth compared to the previous year. Despite this success, elements such as a slight contraction in profit margin to 36 percent were noted, showcasing the competitive environment within the iron ore market.
Additionally, the Indian Railway Finance Corporation (IRFC), which plays a crucial role in financing the Indian railways, announced a more modest dividend of 8 percent, or Rs 0.8 per share. IRFC's latest quarterly results displayed a net profit increase of nearly 2 percent YoY, reaching Rs 1,630.66 crore, while the company's revenue climbed to Rs 6,763.43 crore, reflecting the organization’s stability amidst a growing infrastructure sector.
In the broader market context, IRFC has received a 'sell' rating from Investec, with a concerning target price of Rs 50, indicating expectations of further decline from current levels. Despite these concerns, IRFC continues to perform well relative to many competitors due to its government support, as the government maintains an 86.36 percent stake in the enterprise.
CG Power and Industrial Solutions Ltd also put forward its interim dividend of 65 percent, translating to Rs 1.3 per share. Although faced with a downturn of 68 percent in net profit in the last quarter due to adjustments from discontinued operations, the company's overall total income rose by 27 percent YoY to Rs 2,549.28 crore. This indicates significant underlying growth despite recent operational challenges.
Markets reacted to the news of these dividends as trading volumes expanded significantly. NMDC shares had fallen nearly 4 percent following its ex-dividend status, shedding light on typical market behaviors surrounding dividend announcements. IRFC shares, on the other hand, edged higher by 1.17 percent in early trading.
As financial analysts continue to evaluate these developments, expectations around the dividends and their implications for shareholder value remain pivotal. Analysts are cautiously optimistic about NMDC's financial trajectory, suggesting that growth is supported by increased production capacities and ongoing projects aimed at enhancing dispatch and sales. Dolat Capital maintains a 'buy' rating for NMDC, setting a target price of Rs 90, accentuating the belief that even amidst weaker iron ore prices, there is an underlying strength in demand that will sustain volume growth.
In contrast, CG Power is seen as a firm in transition. IIFL Securities notes that with the ongoing acquisition of EHV power transformer plant assets, CG Power is on track to refurbish its market image and potentially expand its share of international revenue. Upgrades to the stock have been accordingly reflected, with target prices set at Rs 696 from Geojit and even higher at Rs 747 by IIFL, indicating bullish sentiment around CG Power’s long-term recovery.
Meanwhile, Acceleratebs India, a microcap IT solutions provider, has declared an 8 percent dividend as well, attracting attention not just for its financial offerings but also for its comparatively small market capitalization. Trading slightly higher at Rs 131.40, the market has responded positively, suggesting investor confidence in the increasing relevance of technology services in diversified sectors.
The significance of dividends and corporate actions, particularly amid a dynamic market landscape, cannot be overstated. Historically, dividends serve not only as direct returns to investors but also highlight the financial health of companies and their willingness to share profits. As these stocks continue to make waves and capture investor interest, the broader implications for market liquidity and future investments will undoubtedly unfold.
With traders and shareholders focused on the unfolding events surrounding dividend announcements today, the momentum will be closely monitored. The performance of these stocks may well set the tone for continued activity as financial results are analyzed and market expectations recalibrated.
