Rs 16/Share Dividend: Large Cap Stock To Turn Ex-Dividend Soon For 800%: Buy?

A large-cap corporation operating in the capital goods industry is AIA Engineering. For grinding equipment used in the cement, mining, and quarry sectors, AIA Engineering Ltd. specialises in the design, development, manufacturing, installation, and maintenance of high chromium wear-resistant components. The company proposed an 800% dividend for FY23, and according to BSE data, the ex-dividend date falls on September 12, 2023, which market observers might take into account.

AIA Engineering Dividend

"The Board has recommended dividend of Rs 16/- (@800%) per Equity Share of face value of Rs 2/- each fully paid up for the Financial Year 2022-23 subject to the approval of shareholders of the Company. Pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, it is hereby informed that the Company has fixed Book Closure date from Wednesday 13th September 2023 to Tuesday 19th September, 2023 for the purpose of determining entitlement of the members of the Company to receive Dividend of Rs 16/- (@ 800%) per Equity Share having face value of Rs 2/- each fully paid up for the Financial Year 2022-23. The said Dividend, if declared by the shareholders at the ensuing AGM, shall be paid on or before 18th October, 2023, subject to deduction of tax at source as applicable," said AIA Engineering in a stock exchange filing.

AIA Engineering Financials

On a standalone basis, the company recorded net sales of Rs 1,032.89 crore in the June 2023 quarter up 15.15% from Rs. 897.02 crore in the June 2022 quarter. Its net profit was Rs. 247.68 crore in the first quarter of FY24, up 61.33% from Rs. 153.52 crore in the same quarter of FY23. EBITDA was Rs. 363.56 crore, up 60.18% from Rs. 226.97 crore. From Rs. 16.28 in June 2022 to Rs. 26.26 in June 2023, AIA Engineering EPS has grown.

On a consolidated basis, AIA Engineering recorded net sales of Rs 1,239.59 crore in Q1FY24 up 14.81% from Rs. 1,079.70 in Q1FY23. Its consolidated PAT stood at Rs. 272.34 crore in the June 2023 quarter growing by 42.98% from Rs. 190.47 crore in the June 2022 quarter. EBITDA was Rs. 267.82 crore in the June 2022 quarter and Rs. 402.55 crore in June 2023, which is a rise of 50.31%. From Rs. 20.19 in June 2022 to Rs. 28.87 in June 2023, AIA Engineering EPS has grown.

AIA Engineering Share Price Target

Ameya Ranadive, Sr Equity and Derivatives Analyst · Choice International Limited said AIA Engineering, currently trading at 3630, has displayed a remarkable upward trajectory since May 2023, starting from levels around 2700 and consistently forming higher highs and higher lows. One notable aspect of its recent performance is its sustained trading position above key Exponential Moving Averages (EMAs) such as the 20-day, 50-day, 100-day, and 200-day EMAs. This demonstrates the stock's robust bullish momentum and potential for further growth.

While the stock's price action suggests an overall positive trend, it's important to note that the daily chart reveals a divergence in the Relative Strength Index (RSI), signalling a potential short-term weakness. This divergence could be seen as an opportunity for astute investors to accumulate shares at attractive levels, specifically within the range of 3630-3460.

Taking into consideration the technical factors and the potential correction indicated by the RSI divergence, a prudent strategy might involve accumulating the stock at the mentioned price range with an eye on a target of 3900. This target reflects the continuation of the broader upward trend and the anticipation of a renewed bullish momentum.

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.