Rs 15.34/Share Dividend: Large Cap Stock To Trade Ex-Dividend This Week; Buy?

Mazagon Dock Shipbuilders Ltd is a large-cap company in the industrial sector. Headquartered in Mumbai, Mazagon Dock Shipbuilders Limited is a top shipbuilding yard in India, having achieved ISO 9001: 2015 certification. The firm now has an extensive collection of designs for a variety of products for both domestic and foreign customers. For FY24, the company has announced an interim dividend of 153.40%, with November 20th set as the record date. The shares will trade ex-dividend on Monday due to India's T+1 settlement method.

Mazagon Dock Shipbuilders Dividend

The Board of Directors have "approved declaration of Interim Dividend @ 153 % being Rs. 15.34 per equity share aggregating to Rs. 309.39 crore to be paid out of the profits of the Company for FY 2023-24. The Board has declared Monday, 20 November 2023 as the record date for reckoning eligibility of shareholders for the purpose of payment of Interim Dividend. The Interim dividend shall be paid on or before 07 Dec 2023," said Mazagon Dock Shipbuilders in a stock exchange filing.

Mazagon Dock Shipbuilders Q2 Results

Mazagon Dock recorded revenue from operations of Rs 1,827 crore for the September 2023 quarter, up from Rs 1,702 crore for the same period the previous year. Additionally, net profit for the quarter rose to Rs 332.9 crore from Rs 213.9 crore in Q2FY23. EBITDA, or operating profit, rose by 50% YoY to Rs 176.7 crore for Q2FY24 and EBITDA margin climbed by over 300 basis points to 9.7% from 6.9% in the corresponding quarter of the previous fiscal.

Mazagon Dock Shipbuilders Share Price Target

Ameya Ranadive CMT CFTe-Equity Research Analyst at Choice Broking said, "Mazdock, currently trading at 1979, has faced significant downward pressure over the past two months, resulting in a 20% loss during this period. This correction appears to be driven by profit booking, a natural response to the stock's impressive multifold returns in a relatively short timeframe. The general trend for Mazdock is currently exhibiting a degree of weakness, bordering on sideways movement, suggesting a cautious approach for investors. An effective strategy in the interim could involve buying on dips, with a targeted accumulation level around 1815."

"Presently, Mazdock is displaying a lack of strength, trading below its 20-day and 50-day exponential moving averages (EMA). However, a positive note is that it remains above its long-term averages of 100 and 200. The Relative Strength Index (RSI) is notably flat at 46, indicative of a neutral position. A key potential catalyst for a bullish reversal would be the breach and sustained trading above 2065, a level that could trigger a substantial upmove in the stock, possibly reaching 2350. In consideration of the current dynamics, a prudent approach for investors could be to adopt a buy-on-dips strategy, patiently accumulating shares at lower levels. Monitoring the crucial 2065 mark for a breakout and sustained upward momentum would be a pivotal aspect of this strategy," added the analyst.

Disclaimer

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