1 Large Cap & 1 Small Cap Stock To Turn Ex-Dividend Today For 200%: Buy Any?

Large-cap company Balkrishna Industries and small-cap company Tips Industries are the two stocks which are going to trade ex-dividend today for 200% for FY24. Both the companies have fixed October 31, 2023, as the record date towards payment of interim dividend and due to the T+1 settlement mechanism of India, the ex-dividend dates for both the stocks are also falling today.

Balkrishna Industries

For the fiscal year 2023-2024, the Board has announced a second interim dividend on equity shares valued at Rs. 2/-per share (face value) of Rs. 4.00 per equity share (200%). And for the payment of the dividend, the Board has fixed 31st October 2023 as the record date.

The firm saw a YoY decline of 17.67% in revenue from operations, with Rs 2,226 Cr reported in Q2FY24 as opposed to Rs 2,704 Cr in Q2FY23. According to Balkrishna Industries, its total income for the quarter that ended on September 30, 2023, was Rs 2,247 Cr, down 20% YoY from Rs 2,806 Cr in the same period the previous year. Balkrishna Industries' net profit for the quarter under review was Rs 335 Cr, down 17% YoY from Rs 404 Cr in the same quarter last year. EBITDA for the firm dropped by 3% year on year to Rs 548 Cr in Q2FY24 from Rs 564 Cr in Q2FY23.

Balkrishna Industries Share Price Target

Ameya Ranadive CMT, CFTe, Equity Research Analyst at Choice Broking said, "Balkrishna Industries Limited (BALKRISIND) is currently trading at 2563, having experienced some profit-taking in the week leading up to its upcoming financial results. Over the past four months, the stock has demonstrated a commendable phase of consolidation, establishing a robust support range between 2480 and 2370. This consolidation period reflects a matured base formation, indicating resilience against short-term market fluctuations."

"Furthermore, BALKRISIND displays a promising technical outlook. It has successfully closed above its short, mid, and long-term moving averages, including the 50-day, 100-day, and 200-day Exponential Moving Averages (EMA), underscoring strength across various timeframes. The Relative Strength Index (RSI) currently stands at 53, signifying balanced momentum with room for further price appreciation. Additionally, the Average Directional Index (ADX) sits at a moderately strong level of 22, emphasizing a steady and sustainable trend in the stock's movement. This suggests a stable underlying trend, potentially poised for an upward surge." stated Ameya Ranadive.

"With expectations of a potential breakthrough above the 2580 level, we may witness a notable uptick in Balkrishna Industries. In the short term, there is potential for the stock to ascend to the range of 2680 to 2720. This anticipated movement is supported by the existing technical indicators and the solid consolidation base, making the mentioned price targets well within reach.

To conclude, bolstered by a solid foundation, robust moving average performance, balanced momentum, and a sturdy ADX reading, Balkrishna Industries seems well-positioned for a bullish trajectory. Traders and investors might find this an opportune moment to consider potential long positions, while closely monitoring the critical breakout level of 2615-2630 for confirmation of the expected upward movement," the equity research analysts of Choice Broking further added.

Tips Industries

A second interim dividend of Rs. 2/-per equity share (i.e., 200%) has been declared by the company's Board of Directors on fully paid-up equity shares with a face value of Re. 1/-. October 31, 2023, has been set by the firm as the record date for the payment of the second interim dividend. Payout of the interim dividend is scheduled for November 15, 2023.

The firm posted its highest-ever quarterly sales of Rs 60.9 Cr, up 23% year on year from Rs 49.6 Cr in the same period last year. During the quarter, the content cost was Rs 4.7 Cr as opposed to Rs 17.2 Cr in Q2 FY23. Tips Industries posted a 91% YoY rise in net profit from Rs 20.8 Cr in Q2FY23 to Rs 39.7 Cr in Q2FY24. Its EBITDA stood at Rs 49.8 Cr during the quarter under review up by 84% YoY from Rs 27.2 Cr reported in the corresponding quarter of FY23.

Tips Industries Share Price Target

Ameya Ranadive CMT, CFTe, Equity Research Analyst at Choice Broking said, "TIPS IND, currently priced at 347, has recently shown impressive market performance. Between October 17th and 19th, there was a significant increase in trading volume, coinciding with the stock consistently trading above a previous resistance level of 343. This breakout marks an important shift from its previous trading range of 343 to 292."

"Supporting this positive trend, the ADX indicator stands at 24, indicating strong upward momentum. The RSI, at 62 with a clear upward trend, suggests increased strength and potential for further gains. The expanding Bollinger Bands also imply upcoming market volatility, indicating a significant movement may be on the horizon. Notably, TIPS IND is currently trading above its short, mid, and long-term moving averages, including the 20, 50, 100, and 200 EMAs. This further reinforces its strong market position," added Ameya Ranadive.

"Based on these promising indicators, market analysts and experts are looking at a mid-term price target range of 380 to 400, projecting a potential increase of 11% to 17%. While TIPS IND's recent performance is encouraging, caution should be exercised if the stock falls below its breakout zone," Ameya Ranadive claimed.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.