Dividend of Rs 15 Recommended: Record Date On 5th July; Bet On The Shares?

Small-cap Allsec Technologies operates in the commercial services industry. The business leads globally in outsourcing solutions. Tuesday saw Allsec Technologies' shares hit a new 52-week high of Rs 1,007 and closed the day 13.58% higher at Rs 956.90 each following the release of the company's FY24 financial results and dividend recommendation of Rs 15 per share.

Allsec Technologies Dividend

"The Board has recommended a final dividend of INR 15/- per equity share of face value of INR 10/- each for the financial year 2023-24, subject to approval of shareholders at the ensuing 25th Annual General Meeting ("AGM") of the Company, scheduled on August 02, 2024. Record date for the purpose of payment of final dividend is fixed as July 05, 2024. The final dividend, if approved at the AGM will be paid on or before August 19, 2024, 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 regulatory filing.

Allsec Technologies Financials

Allsec Technologies' net profit increased 71.04% to Rs 20.73 crore in the quarter that ended in March 2024 from Rs 12.12 crore in the quarter that ended in March 2023. In the quarter that ended in March 2024, sales climbed by 20.12% to Rs 129.71 crore, compared to Rs 107.98 crore in the quarter that ended in March 2023. EBITDA for the firm shot up from Rs 24.6 Cr in Q4FY23 to Rs 35.2 Cr in Q4FY24, a YoY increase of 43.3%.

CEO Mr. Naozer Dalal said, "Pleased to share the results for Q4 & full FY24 which has been a break-out year for Allsec in all respects - significant uptick in revenue, profitability & cash generation, completion of the projects to upgrade our key platforms - SP4 & HRMS (Buzzily), new customer acquisition, mining of existing accounts & good improvement in customer Net Promoter Scores (NPS) & finally portfolio restructuring (completion of sale process of our Local level Compliances business on 30th April '24)."

Allsec Technologies Dividend

Deven Mehata - Equity Research Analyst at Choice Broking said ALLSEC's recent surge to a new all-time high of 998, coupled with a runaway gap on the daily chart, reflects robust bullish momentum. This breakout, supported by significant trading volumes, underscores the stock's underlying strength. Additionally, trading above all moving averages further validates its bullish outlook.

For existing investors, booking profits may be prudent, given the stock's overbought signals in the short term. However, it's essential to remain vigilant and monitor the stock's price action closely. Meanwhile, for prospective investors, considering fresh investments on market retracements or dips could be a strategic approach. The stock's strong support at 790, aligned with its 20-day Exponential Moving Average (EMA), provides a crucial reference point for potential entry positions.

Overall, while ALLSEC exhibits promising bullish momentum and technical strength, investors should exercise caution and implement risk management strategies, especially in light of the stock's recent run-up. By balancing profit-taking with strategic entry points, investors can navigate the market dynamics effectively and capitalize on potential opportunities presented by ALLSEC's upward trajectory.