4.70% Dividend Yield: IT Stock Declares Massive Rs 30/Share Dividend; Buy?

During Friday's closing session, Allsec Technologies Ltd, a small-cap IT-enabled services firm, had a market cap of Rs 978.07 Cr. Leading provider of outsourcing solutions worldwide is Allsec which has over 20 years of experience providing excellent global BPO services, and it has over 4,000 FTEs distributed throughout 5 contact centers in the US, Philippines, and India. The company also leads the industry in Sole-BPO for HRO services that process payroll. Market observers will be keeping a close eye on the stock because the Board of Directors announced a dividend of Rs 30 per share, bringing the dividend yield to 4.70%.

Allsec Technologies Dividend

The Board of Directors of the company has declared an interim dividend of Rs 30/- per equity share of face value of Rs 10/- each for the financial year 2023-24.

"The Record Date for the purpose of payment of the Interim Dividend is fixed as Friday, November 10, 2023. The Interim Dividend will be paid on or before November 21, 2023 or within 30 days from the date of declaration as per the provisions of Companies Act, 2013, through electronic mode or by dividend warrants, as applicable," said Allsec Technologies in a stock exchange filing.

Based on the declaration of the above-discussed interim dividend, the stock is currently trading at a dividend yield of 4.70% based on Friday's closing price.

A 200.00% equity dividend, or Rs 20 per share, at face value of Rs 10 has been declared by ALLSEC Technologies for the fiscal year ended in March 2023. With the current share price of Rs 637, this translates into a 3.13% dividend yield. The company has a strong dividend history and has paid out dividends regularly over the previous five years. According to Trendlyne's records, since July 5, 2006, Allsec Technologies Ltd. has issued 8 dividends.

Allsec Technologies Q2 Results

On a standalone basis, the company declared a net income of Rs 76.62 Cr during the quarter ended September 30, 2023, compared to Rs 68.31 Cr recorded in the same quarter of the previous fiscal. Its net expenses stood at Rs 67.39 Cr during Q2FY24 as against Rs 61.41 Cr during Q2FY23. According to a stock exchange filing, ALLSEC Technologies reported an EBIT of Rs 9.90 Cr during the quarter under review compared to Rs 7.68 Cr in the year-ago quarter. ALLSEC Technologies posted a standalone net profit of Rs 7.21 Cr in Q2FY24 compared to Rs 5.12 Cr in the corresponding quarter of the previous fiscal.

Allsec Technologies Share Price Target

Deven Mehata-Equity Research analyst at Choice Broking said, "ALLSEC is presently trading around 635 levels and displays some promising indicators. It boasts a sturdy support zone within the 605-610 range, which is not only a significant price floor but also aligns closely with the 20-Day Exponential Moving Average (EMA). The fact that the stock is trading above these crucial moving averages is an encouraging sign, indicating its current upward trajectory."

"Moreover, the Relative Strength Index (RSI) stands at 64, signalling strength in the stock. An RSI of 64 typically suggests that the stock has positive momentum," he stated.

"Investors should take note that any dips in the stock's price near the support levels of 605-610 could represent attractive buying opportunities. The stock may encounter minor resistance at around 645 levels, but once this level is overcome, it could pave the way for further gains towards its all-time high levels of 750 and potentially even higher. This analysis suggests that ALLSEC is exhibiting favourable conditions for potential investors, with strong support, positive momentum, and a clear path to higher price levels," Deven Mehata 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.