High Promoter Holding Stock Okays Rs. 25/Share Dividend; Buy The Logistic Stock?

The leading express air, integrated transportation, and distribution firm in South Asia, Blue Dart Express Ltd., provides logistical solutions to more than 55,400 locations throughout India. The Board has recommended a dividend of Rs 25 and the firm has released its financial results for the quarter and year ending March 31, 2024. Following the news, the shares of Blue Dart Express ended 9.38% higher on the BSE at Rs 6819.90 apiece on Friday. Blue Dart Express is a high promoter holding stock of 75% with FII stake of 5.40%, DIIs stake of 11.73% and public stake of 7.88% as of 31st March 2024.

Blue Dart Express Dividend

The Board of Directors "Recommended the payment of Dividend of Rs. 25/- (Rupees Twenty Five only) per share on the Equity Capital for the Financial Year ended March 31, 2024, subject to necessary approval by the Members at the ensuing Annual General Meeting. The dividend, if approved at the ensuing Annual General Meeting of the Company, shall be paid within 30 days of ensuing Annual General Meeting. The Annual General Meeting of the Company shall be held on July 19, 2024," said Blue Dart Express in a regulatory filing.

Blue Dart Express Results

On a consolidated basis, the company achieved revenue from operations of Rs 1,322.87 crore in the March 2024 quarter up 8.74% from Rs. 1,216.55 crore in the March 2023 quarter. Its net profit stood at Rs. 77.78 crore in Q4FY24 up 12.01% from Rs. 69.44 crore in Q4FY23. The company's EBITDA reached Rs. 237.01 crore on a consolidated basis in the quarter under review up 14% from Rs. 207.90 crore in the same quarter of FY23.

Balfour Manuel, Managing Director, Blue Dart Express, stated, "In FY24, our profit margin levels have been sustained amidst network expansion and infrastructure investments in the recent quarters. These initiatives included the establishment of crucial air routes through the acquisition of two 737 freighters and the inauguration of state-of-the-art facilities. With addition of network and capacities, the growth in volumes in picking up additional momentum. The volumes have continued to grow with 9.5% growth in shipments and 4.4% growth in weights during the financial year. Additionally, we introduced innovative shipping platforms and forged strategic partnerships to further enhance our operations. These efforts signify our commitment to improving customer experience and strengthening market position. Amidst this trajectory of growth, we have consistently maintained operational efficiency, serving as a testament to our pursuit of excellence."

"We are optimistic about the opportunities that lie ahead. Aligned with India's development path, we are focusing on offering expedited deliveries across the country. With our capabilities, leadership, and the strength of our ground surface and air operations, we are poised to realize our goals," he further added.

Blue Dart Express Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "BLUEDART is currently consolidating within a narrow range of 6190-6440 levels over the past eight days, exhibiting a period of indecision in the market. This range-bound movement indicates equilibrium between buyers and sellers, with significant support found near the lower band of the range, aligned with the stock's 20 and 50-day Exponential Moving Average (EMA) levels. Conversely, a resistance zone is observed near 6500 levels, coinciding with the 200-day EMA, representing a crucial hurdle for further upside movement."

"Traders and investors holding positions from lower levels are advised to capitalize on the stock's strength by booking partial profits and implementing a trailing stop loss at 6190 levels to protect gains and manage risk effectively. However, for fresh buying opportunities, it is prudent to await a breakout above the resistance level at 6500. This breakout could signal renewed bullish momentum and potential upward movement in the stock price. As such, investors should exercise patience and vigilance, monitoring price action closely for decisive moves before considering new positions," the analyst further added.

Disclaimer

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