Rs 17.27/Dividend: Auto Stock To Trade Ex-Dividend Soon For 863.50%, Buy?

Sharda Motor Industries Ltd is a small cap company dealing in the automobile sector. Leading the industry in the production of soft top canopies, pressed part-white goods, independent suspension, seat frames, seat covers (for two- and four-wheelers), exhaust systems, and catalytic converters is Sharda Motor. Sharda Motor Industries Ltd (SMIL), a well-known brand in the automobile sector, was established in 1986. According to information available on the BSE, the company has announced a final dividend of 863.50% for FY23, and the ex-dividend date will take place on September 18, 2023.

Sharda Motor Dividend

"The Board has recommended a final Dividend of Rs. 17.27 per equity share of Face Value of Rs. 2/- each (i.e 864% of Face Value per equity share); for the Financial Year 2022-23, subject to the approval of shareholders in the ensuing Annual General Meeting," said Sharda Motor in a stock exchange filing.

"The dividend, as recommended by the Board, if approved at the AGM, in respect of equity shares held in electronic form will be payable to the beneficial owners of shares that stood as on Tuesday, 19th September, 2023, as per the data provided by the Depositories to the Company for this purpose. In case of shares held in physical mode, the dividend will be paid to the shareholders, whose names shall appear in the Company's Register of Members as on Tuesday, 19th September, 2023," said the company in a regulatory filing.

Sharda Motor Financials

In the June 2023 quarter, the company's net sales jumped by 4.19% to Rs. 654.10 crore on a consolidated basis from Rs. 627.81 crore in the same quarter in the previous year. Its net profit was Rs. 55.22 crore in the first quarter of FY24, up 22.1% from Rs. 45.23 crore in the same period of FY23, while EBITDA was Rs. 86.64 crore, up 25.67% from Rs. 68.94 crore in the same quarter of FY23. From Rs. 15.21 in June 2022 to Rs. 18.57 in June 2023, Sharda Motor's EPS has grown.

Sharda Motor Share Price Target

Deven Mehta, Choice Broking said, "SHARDAMOTR's recent price action suggests a notable development in its trading dynamics. After finding support at the 985 level, the stock managed to breach the critical resistance point at 1065, a level that had previously marked its all-time high. As of now, SHARDAMOTR is trading at approximately 1090.70, indicating a significant breakout above this resistance level and establishing a fresh all-time high. This breakout is an encouraging sign for investors, suggesting that the stock has the potential for further upward movement. Additionally, the fact that it is trading above key moving averages underscores its current strength and positive momentum. The Relative Strength Index (RSI), a widely followed momentum indicator, is at 78. This level indicates that the stock may be entering overbought territory, suggesting caution to traders and investors. While this doesn't necessarily imply an immediate reversal, it does indicate that the stock may need to cool off before continuing its ascent."

Disclaimer

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