Rs 20/Share Dividend: LTIMindtree To Turn Ex-Dividend Tomorrow For 2000%; Buy?

LTIMindtree a large cap company in the IT sector is going to turn ex-dividend tomorrow on 27th October, Friday. The IT giant has declared a massive interim dividend of 2000% for FY24 and for the purpose of the same the record date is falling tomorrow.

LTIMindtree Dividend

The Board of Directors of the company have declared an interim dividend of Rs. 20 per equity share of Re. 1 each. "The interim dividend shall be paid within 30 days of declaration to those shareholders whose name will appear in the Register of Members or in the list of Beneficial Owners provided by the Depositories as on Friday, October 27, 2023, being the 'Record Date' fixed for the purpose," said LTIMindtree in a stock exchange filing.

A 6000.00% equity dividend, or Rs 60 per share, at face value of Rs 1 has been declared by LTIMindtree for the year ending in March 2023. A dividend yield of 1.17% can be generated at the current share price of Rs 5155.25. The company has a strong dividend history and has paid out dividends on a regular basis over the previous five years. According to Trendlyne's statistics, since November 17, 2016, LTIMindtree Ltd. has announced 16 dividends.

LTIMindtree Financials

In comparison to the corresponding quarter of the previous year, which had a consolidated net profit of Rs 1,189 crore, LTIMindtree's Q2FY24 experienced a 2.24 per cent decline in its PAT to Rs 1,162.3 crore. Compared to Rs 8,227.8 crore in Q2FY23, or a growth of 8.23% YoY, the total revenue from operations for Q2FY24 was Rs 8,905.4 crore. The total income for Q2FY24 climbed 7.86% to Rs 9,048.6 crore from Rs 8,388.9 crore in Q2FY23.
Revenue, measured in dollar terms, totalled $1.08 billion, growing 1.6% on a quarterly basis. Operating margin, also known as EBIT margin, fell to 16 per cent from 16.7 per cent in Q1FY24. With a net gain of 794 employees, LTIMindtree's total workforce in the second quarter was 83,532. The trailing 12-month attrition rate declined from 17.8% in the previous quarter to 15.2% during the quarter under review.

LTIMindtree Share Price Target

Ameya Ranadive CMT CFTe of Choice Broking said LTI Mindtree is currently trading at 5069, reflecting a correction of approximately 8% since the announcement of its recent results, subsequently stabilizing around its base level of 5070. Notably, LTIM has demonstrated robust support within the range of 4800-5100 over the past year, underscoring its significance as a critical support/resistance zone. Presently, the stock exhibits signs of weakness, having breached its short and mid-term moving averages, including the 20-day, 50-day, and 100-day Exponential Moving Averages (EMA). The Relative Strength Index (RSI) stands at 41, indicating a relatively weaker momentum.

A closer examination of the chart structure suggests a potential opportunity for accumulation in the range of 5055-4800 levels in the foreseeable future. This range aligns with the historical support levels and may present an attractive entry point for investors seeking to establish or add to their positions in LTIM.

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.