Rs 26/Share Dividend: 19th April Fixed As Record Date; Buy The Auto Stock To Be Eligible?

As of Friday's BSE closing session, Schaeffler India Ltd.'s market value was Rs 51,099.58 Cr, making it a large-cap automobile firm. With three significant well-known product brands-FAG, INA, and LuK-Schaeffler has a substantial presence in India with its four manufacturing plants and eleven sales offices. Established in 1964, the manufacturing facility located in Vadodara, Gujarat, produces an extensive array of ball, cylindrical roller, spherical roller, and wheel bearings, all of which are marketed under the FAG brand. Next-generation deep groove ball bearings and roller bearings, also marketed under the FAG brand, are produced in the second factory in Savli, Vadodara.

Schaeffler India Dividend

"Your Company has a steady dividend payment history and considering the financial performance of the year 2023, your Directors recommend dividend for the year ended December 31, 2023 at the rate of Rs 26/- per share of face value Rs 2/- (2022:24/- dividend per share of face value Rs 2/-) per equity share amounting to Rs 4,063.9 million (2022: Rs 3,751.3 million). Considering sufficiency of balance, your Directors do not propose to transfer any amount to General Reserves for the year under review," said Schaeffler India in a statement.

"During the year, we continued to maintain working capital at optimal levels while continuing the trajectory of investments for our capex framework. This has led to the generation of a strong Free Cash Flow (before cash in and outflows for M&A activities) of Rs 4,620 million during the year. We continued our consistent approach to shareholder value creation by announcing a dividend of Rs 26 per equity share (with a face value of Rs 2 per share), reflecting a pay-out ratio of 45% thus maintaining our target pay-out ratio of 30-50% of the annual standalone Profit After Tax (PAT)," said Hardevi Vazirani Director - Finance & CFO at Schaeffler India.

For the full year ended December 2023, the company said in a statement that the year's dividend payout ratio stands at 45%. This ratio has been gradually increasing and is in line with its target dividend payout range of 30-50% of the annual standalone PAT.

Schaeffler India Record Date For Dividend

"The Members, whose names appear in the Register of Members/Beneficial Owners as on the record date (cut- off date) i.e. Friday, April 19, 2024, may cast their vote electronically. The e-voting period will commence from Tuesday, April 23, 2024 at 9:00 a.m. (IST) and will end at 5:00 p.m. (IST) on Thursday, April 25, 2024. The remote e-voting module will be disabled on April 25, 2024 at 5:00 p.m. (IST). The voting right of Shareholders shall be in proportion to their share in the paid-up equity share capital of the Company as on the cut-off date, being April 19, 2024. A Person who is not a Member as on the cut off date should treat this Notice for information purpose only," said Schaeffler India in a statement.

Schaeffler India News

"Pursuant to Regulation 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that a meeting of Board of Directors of the Company is scheduled to be held on Thursday, April 25, 2024, inter alia to consider and approve the Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter ended March 31, 2024. Further, as per circular issued by BSE Limited and National Stock Exchange of India Limited dated February 3, 2014 and December 18, 2013, respectively, the exchanges are hereby informed that the 'Trading Window' of the Company is closed from April 1, 2024, and shall remain closed up to April 27, 2024 (both days inclusive) for the above purpose, in compliance with the Company's Code on Prohibition of Insider Trading," said Schaeffler India in a BSE filing on 12th April.

Schaeffler India Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said SCHAEFFLER Ltd is currently trading at Rs 3268.35 and has demonstrated a robust rally from lower levels, forming a pattern of higher highs and higher lows.

The immediate support for SCHAEFFLER Ltd is at Rs 3050, closely aligned with the 20-day Exponential Moving Average (EMA). This level signifies historical buying interest and provides a foundation for the stock's price stability. It also serves as a potential stop for downward movements.

A good buying opportunity presents itself near the Rs 3180 level for those interested in taking a long position. If the price breaks the Rs 3500 mark, the stock could potentially move towards the Rs 4000 level and beyond.

For a cautious approach, buying on dips is suggested at Rs 3000 with a stop-loss (SL) at Rs 2950. The targets for this trade are Rs 4000.

In summary, SCHAEFFLER Ltd presents potential buying opportunities. However, investors should closely monitor the stock's price movement and implement appropriate risk management strategies to safeguard their investments.

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.