Highest Ever Dividend of Rs 16 Declared: Buy The Stock For The Cash Reward?

Since 1983, SML Isuzu Limited (SMLI) has been a reputable and trustworthy manufacturer of commercial vehicles. It has been manufacturing light and medium-sized commercial vehicles for more than 40 years. Following the release of financial records for the quarter that ended on March 31, 2024, and a recommendation for a record-breaking dividend of Rs 16 per share, the small-cap stock has come under attention.

SML Isuzu Dividend

"The Board of Directors has considered and recommended a final dividend of 160 % (Rs. 16 per equity share of Rs. 10 each fully paid up) amounting to Rs. 23.15 crores, subject to approval by the shareholders at the ensuing Annual General Meeting," said the company in a regulatory filing.

SML Isuzu Financials

In the March 2024 quarter, the company's net sales of Rs. 679.60 crore were up 16.53% from Rs. 583.22 crore in the same quarter of 2023. Its net profit jumped by 95.3% from Rs. 26.79 crore in Q4FY23 to Rs. 52.32 crore in Q4Y24. EBITDA climbed 63.11% from Rs. 44.89 crore in the same quarter last year to Rs. 73.22 crore in the quarter under review.

SML Isuzu Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "SMLISUZU is currently trading at 2192, showcasing a strong pattern forming a cup and handle pattern on the daily chart. This breakout, supported by substantial volumes, signifies robust strength in the stock. Trading above its short-term (20-day), medium-term (50-day), and long-term (200-day) EMA levels further confirms its bullish momentum. The stock has strong support at 2070, aligning with its 50-day EMA levels. This level provides a crucial safety net for investors. Additionally, SMLISUZU its attempting previously all-time high once again, reinforcing its upward trajectory."

"On the upside, the stock exhibits the potential to advance towards a target price of 2555 in the near term. This target reflects the continued bullish sentiment and the momentum gathered from the breakout pattern. Investors holding positions from lower levels should consider trailing their stop loss to 2070 to safeguard gains while allowing for further upside. For new investors, any dips towards the support level of 2121 could offer a strategic entry point, ensuring a favourable risk-reward scenario. In summary, SMLISUZU recent technical breakout, supported by significant volume and trading above key EMA levels, indicates strong bullish potential. With robust support at 2070, the stock is well-positioned for a move towards 2555, making it an attractive prospect for both current holders and new investors," Deven Mehata added.

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.