Realty Stock Declares Rs 8/Share Dividend: Is It The Right Time To Buy For The Payout?

Since its incorporation in 1985, Eldeco Housing and Industries Ltd. (EHIL) has been a force in the Lucknow real estate market for more than thirty years. The Eldeco Group has always been a pioneer in real estate development. Eldeco's largest industrial project is the 1200-acre, state-of-the-art Eldeco Sidcul Industrial Park in Sitarganj, Uttarakhand. Listed on the Bombay Stock Exchange, EHIL has consistently paid dividends since its founding.

Eldeco Housing and Industries Dividend

"The Board considered and recommended a final dividend for the financial year 2023-2024, at the rate of 400% i.e. Rs. 8/- per equity share of face value of Rs. 2/- each which shall be paid, subject to the approval of the shareholders in the ensuing Annual General Meeting (AGM) of the Company. The Dividend for the financial year ended March 31, 2024, if declared, at the ensuing Annual General Meeting, will be paid to the shareholders, within 30 days from the date of declaration," said the company in a regulatory filing.

Eldeco Housing and Industries Financials

Eldeco Housing & Industries' net profit for the quarter ending March 2024 was Rs 11.70 crore, down 21.48% from Rs 14.90 crore in the same quarter of FY23. In the quarter that ended in March 2024, sales increased by 27.13% to Rs 49.20 crore, compared to Rs 38.70 crore in the quarter that ended in March 2023. EBITDA plummeted 19.13% from Rs. 21.38 crore in Q4FY23 to Rs. 17.29 crore in Q4FY24. Net profit for the entire year dropped by 23.69% to Rs 33.86 crore in the fiscal year that ended in March 2024 from Rs 44.37 crore in the fiscal year that ended in March 2023. In the year that ended in March 2024, sales fell 12.73% to Rs 112.70 crore from Rs 129.14 crore in the year that ended in March 2023.

Mr. Pankaj Bajaj, Chairman & Managing Director said, "The fiscal year 2024 was a significant year for us on two counts- One, we received our highest-ever bookings in terms of sales value and Two, we were finally able to break the logjam of fresh land bank acquisition and add to our project pipeline. In terms of bookings, the total area booked during the year skyrocketed by 287% year-over-year to 782,413 square feet in terms of area and Rs 388 crores in terms of value. Both the numbers are the highest in the Company's history. The fourth quarter itself saw a booking value of Rs. 254 crores compared to Rs. 25 crores in Q4FY23, largely driven by the successful launch of Imperia Phase 2 project. We were in fact able to sell out almost the entire inventory at Imperia 2 within a couple of weeks of launch."

"The other highlight was our fresh land acquisition of about 60.9 acres spread over 3 locations in Lucknow. In all three locations we are still aggregating more land. We hope to be able to launch at least 2 of these projects within FY 24-25. This is in addition to the forthcoming launch of our luxury project- Eldeco Trinity- which will happen within the first quarter of FY25. With these launches in FY25 we hope to be able to match or exceed the record sales of FY24," he further added.

Eldeco Housing and Industries Share Price Target

"Real estate builder and developer Eldeco Housing And Industries Ltd has been displaying strong momentum in the market. As per analysis, the stock's bullish trend is likely to continue for some time. While the stock is trading at optimum valuation, there is a possibility of a significant breakout. Hence, those interested in this stock may consider the buying range of Rs. 1070-1100 to enter it and averaging near Rs. 1500. They may hold this stock for 1-25 weeks for a targeted price of Rs. 1170 to 1500, but set their stop loss at Rs. 955 to minimize loss," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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