HDFC Mutual Fund-Backed Stock To Turn Ex-Dividend Tomorrow For Rs 8/Share: Buy?

A capital goods small-cap firm is Uniparts India Ltd. Global manufacturer of engineered systems and solutions, Uniparts is headquartered in India. With six production sites and four warehouse locations spread across the US, Europe, and India, the Group is a top provider of systems and components for the off-highway sector, and its products are sold in 25 countries. The company has set November 24, 2023, as the record date for an interim dividend of 80% with a face value of Rs 10. Tomorrow, on Friday, the stock will trade ex-dividend due to the T+1 settlement process.

Uniparts India Dividend

The company's Board of Directors has declared a first interim dividend of Rs. 8 per equity share with a face value of Rs. 10, or 80% of the equity share capital of the company. The record date for determining the eligibility of shareholders to receive this dividend is November 24, 2023. Within 30 days of the announcement date determining the shareholders, the eligible shareholders will receive the interim dividend payout.

Uniparts India Financials

The company's revenue from operations on a stand-alone basis decreased by 25.46% to Rs. 186.42 crore in the September 2023 quarter from Rs. 250.11 crore in the corresponding period in 2022. After reporting a net profit of Rs. 26.38 crore in Q2FY23, it dropped to Rs. 13.46 crore in Q2FY24, a 48.97% fall. From Rs. 43.07 crore in the same quarter previous year to Rs. 25.59 crore in the current quarter, the company's EBITDA fell by 40.59%.

Uniparts India Share Price Target

Mandar Bhojane-Equity Research Analyst at Choice Broking said, "The current trading price of UNIPARTS is Rs 544.7. The stock is exhibiting a bearish trend on the daily chart, characterized by lower highs and lower lows, indicating a potential downtrend. The price appears to be consolidating within a range of Rs 600 to Rs 500, suggesting a sideways movement. If the stock manages to close above the Rs 600 level, it could signal a potential bullish reversal with near-term targets at Rs 660 and Rs 720. Conversely, immediate support levels are identified at Rs 530."

"Key technical indicators reinforce the bearish outlook. The Relative Strength Index (RSI) is currently at 41.5, indicating a downward trend. Additionally, the Stochastic Relative Strength Index (Stoch RSI) recently experienced a negative crossover, further supporting the bearish sentiment. To prudently manage risk, it is advisable to exercise caution if the stock falls below the Rs 500 level, as this is considered a crucial support level. This precautionary measure helps protect investments in the event of an unexpected market reversal. On the flip side, a breakout above the Rs 600 level could lead to further upward momentum, targeting levels of Rs 660 and Rs 720 in the short run. Investors should closely monitor price movements and key technical levels to make informed decisions and adjust their strategies accordingly," the analyst further added.

Uniparts India Shareholding Pattern

During Q2FY24, the company reported promoters' shareholding of 65.66%, FIIs stake of 3.33%, DIIs stake of 11.04%, public stake of 19.04% and others stake of 0.94%. As per the shareholding pattern of Uniparts India for the July to September 2023 quarter, Nippon Life India Trustee Ltd-A/C Nippon India Small Cap Fund held 4,80,069 shares or 1.06% stake and Hdfc Mutual Fund - Hdfc Childrens Gift Fund held 7,81,460 shares or 1.73% stake in the company.

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.