LIC-Backed Stock To Turn Ex-Dividend Today For 250%: Buy?

Small-cap firm Lux Industries operates in the consumer discretionary industry. According to information on the BSE, the company has announced a final dividend of 250% for FY23, and the shares will begin trading ex-dividend today.

Lux Industries Dividend

The Board of Directors of the company have recommended a final dividend @ 250 % i.e. Rs. 5/- per equity share of the face value of Rs. 2/- each for the financial year ended 31 March 2023.

"The final dividend of Rs 5.00/- per share (i.e. 250%), as recommended by the Board of Directors, if approved at the AGM, will be paid within 30 days of declaration to those members whose names appear on the Register of members/ beneficial owners as provided by the Depositories as on the Record Date, being September 22, 2023 subject to deduction of tax at source," said Lux Industries in a stock exchange filing.

Lux Industries Financials

The company recorded a revenue from operations of Rs 525.4 Cr in Q1FY24 down by 8% YoY from Rs 571.7 Cr in Q1FY23. Its EBITDA stood at Rs 33.2 Cr in the June 2023 quarter down by -57% YoY from Rs 77.8 Cr in the June 2022 quarter whereas its EBITDA Margin was 6.33% in the reported quarter compared to 13.61% in the same quarter of FY23. Lux Industries reported a net profit of Rs 15.1 Cr in Q1FY24 down by 70% YoY from Rs 50.0 Cr in Q1FY23 while PAT margin reached 2.88% as against 8.74% in the corresponding quarter of FY23.

Lux Industries Share Price Target

Kkunal Parar of Choice Broking said, "After a healthy correction from it's all-time high up to the level of 1111, the stock has started to trade above its 50 Weeks Moving Average which shows that the trend has changed from down to up and based on which we can see upside move in the counter. Moreover, the stock has given a breakout of its Upper Band of Downward Falling Channel formation which shows a bullish move in the counter. Furthermore, the stock has also taken the support of its Upward Rising Trend line which again indicates a strong bounce back in the counter. A weekly indicator MACD is trending with a positive crossover and above its Zero line which points out for a positive breath in the counter. Based on the above technical structure, we are expecting a good upside move in the counter upto the level of 1720-2030 with strong support of 1350.00."

Lux Industries Shareholding

During Q1FY24, the company reported promoters shareholding of 74.19%, FIIs stake of 2.18%, DIIs stake of 8.96% and public stake of 14.67%. As per the data available on BSE for the April to June 2023 quarter, LIC held 14,26,317 fully paid-up equity shares or 4.74% stake in LUX Industries.

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.