Rs 32/Share Dividend: SBI Mutual Fund Backed Stock To Turn Ex-Dividend In 2 Days; Buy?

A mid-cap company in the capital goods industry is ESAB India. In the realm of welding and cutting equipment and supplies, ESAB is a pioneer. For nearly every fabrication, welding, and cutting process or application, ESAB has an endless supply of products and solutions.

The company has declared an interim dividend of 320% at a face value of Rs 10 and has fixed 25/11/2023 as the record date. As per the data available on BSE, the company has fixed 24th November as the ex-dividend date hence interested investors can buy the stock before the ex-date in order to be eligible for Rs 32 per share dividend payout.

ESAB India Dividend

For the fiscal year that ends on March 31, 2024, the Board of Directors declared an interim dividend of Rs. 32/-per equity share, or 320%, with a face value of Rs. 10/-per share. ESAB India has fixed 25th November 2023 as the record date and 8th December 2023 as the dividend payment date.

ESAB India Financials

From Rs 278.39 Cr in Q2FY23 to Rs 304.29 Cr in Q2FY24, the company's net income jumped by 9.30% YoY. In the quarter under review, the company recorded net expenses of Rs 252.14 Cr, up from Rs 235.41 Cr in the same quarter last year. In the September 2023 quarter, its EBIT was Rs 52.15 Cr, up from Rs 42.98 Cr in the same quarter the previous year. According to the firm, its net profit for Q2FY24 was Rs 38.41 Cr, down from Rs 31.91 Cr in Q2FY23.

ESAB India Share Price Target

Ameya Ranadive CMT, CFTe, Equity Research Analyst at Choice Broking said, "ESABINDIA, currently trading at 6130, witnessed profit booking after reaching a record high of 6585. Despite this, the stock has found support around its 20-Day Exponential Moving Average (EMA), suggesting a potential short-term stabilization.

Notably, it maintains a positive trend, trading above both its 50-Day and 200-Day EMAs, indicating a robust overall outlook. While the recent correction indicates a moderation in bullish momentum, the Relative Strength Index (RSI) has transitioned from overbought levels (85) to 60. This adjustment signifies a reduction in extreme bullish sentiment while still reflecting a reasonably positive market outlook. The stock's resilience around the crucial support zone of 5800 underscores its potential for recovery."

"Looking forward, a noteworthy development would be a sustained break above the 6500 level. Such a move could trigger a substantial upswing, with the stock potentially targeting the 6800 level. This scenario, if realized, would signify a renewed bullish phase, further affirming the stock's positive trajectory. Investors should closely monitor these key levels for potential opportunities in the evolving market conditions," the analyst further added.

ESAB India Shareholding Pattern

In Q2FY24, the firm disclosed that 73.72% of its shares were owned by promoters, 1.08% by FIIs, 13.00% by DIIs, and 12.19% by the public. According to ESAB India's shareholding pattern for the July-September 2023 quarter, Nippon Life India Trustee Ltd A/c - Nippon India Small Cap Fund owned 3,26,882 shares, or 2.12% stake in the firm, while SBI Retirement Benefit Fund - Conservative Plan held 15,11,576 shares, or 9.82%.

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.