Rs 4.95/Share Dividend: Ex-Date In 1 Day On 3rd April; Buy The Auto Stock?

At the close of trade on Monday, Ashok Leyland, a large-cap auto corporation, had a market value of Rs 51,282.96 Cr on the BSE. Yesterday, the stock closed 2.04% higher at Rs 174.65 a share following the release of March sales data. Total domestic sales were 21,317 units, a 7% decrease from 22885 units in March 2023. Nonetheless, the spotlight will be on the stocks due to the ex-dividend date, which is April 3rd for a 495% payout.

Ashok Leyland Dividend

The Board of Directors of the company, at their meeting held on March 25, 2024 has declared an interim dividend of Rs. 4.95/- per equity share of Re. 1/- each, for the FY 2023-24.

"Further, as intimated vide letter dated March 20, 2024, the Record date for the purpose of determining the Members eligible to receive Interim Dividend is Wednesday, April 3, 2024. The said interim dividend, would be paid, on or before April 23, 2024," said Ashok Leyland in a regulatory filing.

Ashok Leyland News

In comparison to 22885 units in March 2023, Ashok Leyland's March domestic sales of 21,317 units in March 2024 represented a 7% decrease. The company announced on Monday that domestic MHCV sales, which were 15,936 units in March 2023, showed a 9% year-on-year fall to 14,517 units. In March 2024, Ashok Leyland sold 6,800 LCVs, a 2% decrease from the 6,949 units sold during the same month in the previous fiscal year. In comparison to 23,926 vehicles sold in March 2023, the company's total vehicle sales (domestic + exports) in March 2024 were 22,886 units in March 2024, a 4% drop. The total MHCV sales for March 2024 were 15,562 units, a 7% decrease from 16,773 units in March 2023. According to a regulatory filing, the company said that LCV sales were recorded at 7,304 units as opposed to 7,153 units, representing a 2% YoY growth.

Ashok Leyland Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said ASHOKLEY is currently trading at Rs 171.25 and has recently reversed from a demand zone, forming a double bottom pattern, indicating a potential reversal and a strong bullish trend. A breakout above Rs 174 could propel the stock towards the Rs 190 level, with an immediate resistance at Rs 183. On the flip side, Rs 166 & Rs 160 serve as crucial support levels.

Furthermore, after a prolonged correction, the stock has reversed from the support level. The Relative Strength Index (RSI) is currently at 55.80, on an upward trajectory, suggesting growing buying momentum. Collectively, these technical indicators imply that ASHOKLEY has the potential to reach the Rs 190 target in the near term.
A prudent strategy would involve considering buying opportunities on dips at levels around Rs 166.

In summary, based on technical analysis and prevailing market conditions, ASHOKLEY appears to present a promising buying opportunity for those targeting a Rs 190 price objective. It is crucial to implement prudent risk management strategies to navigate potential market fluctuations.

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.