Rs. 51/Share Dividend: August 7, 2024 (Wednesday) Fixed As Record Date; Buy The Blue Chip Auto Stock?

Established in 1982, Eicher Motors Limited (EML) is the flagship entity of the Eicher Group in India and a prominent participant in the country's automobile industry. The parent company of Royal Enfield, the world's leading manufacturer of middleweight bikes, is Eicher Motors Limited (EML). Since April 1, 2016, Eicher Motors, which is traded on both the BSE and the National Stock Exchange, has been featured in the NSE's benchmark Nifty 50 Index. Following the announcement of the record date for dividend purposes, shares of Eicher Motors saw a 0.05% decrease to close at Rs 4655.20 on Monday, after hitting a new 52-week high of Rs 4,722.40 each on the BSE.

Eicher Motors Dividend

For the purpose of dividend of Rs. 51/- per equity share of face value of Re. 1/- each, as recommended by the Board of Directors for the financial year 2023-24, the company has fixed Wednesday, August 7, 2024 as the record date for determining the eligibility of the shareholders for payment of dividend for the financial year 2023-24, subject to the approval of dividend by the Members at the aforesaid Annual General Meeting, said Eicher Motors in a regulatory filing.

"The Board of Directors of the Company at their meeting held on May 10, 2024, considered and recommended a final dividend aggregating to Rs 1,396.41 crores (34.9% of PAT) at Rs 51 per share (nominal value of Rs 1 per share) for the financial year ended March 31, 2024. The dividend per share is the highest ever for EML and is 37.1% higher than the FY 2023 dividend per share," said Eicher Motors in a stock exchange filing.

Eicher Motors Financials

Compared to Rs 3,804 crores in the same quarter of FY 2022-2023 Eicher Motors Ltd. (EML) achieved a total revenue of Rs 4,256 crores, an increase of 11.87% during the quarter under review. EBITDA was Rs 1,129 crores in the quarter ended 31st March 2024, up 20.88% as compared to Rs 934 crores in the same quarter of the previous financial year. Compared to Rs 906 crores during the same time previous year, the profit after tax surged by 18.20% to Rs 1,070 crores in Q4FY24. Sales of Royal Enfield motorcycles climbed to 227,925 during the quarter, compared to 214,685 sold in the same time of FY 2022-2023 (a gain of 6.17%).

The total revenue generated by the company was Rs 16,536 crores in the entire year FY24, up 14.50% from the Rs 14,442 crores reported for the fiscal year 2022-2023. When compared to Rs 3,444 crores in FY23, EBITDA was Rs 4,327 crores, up 25.65% in FY24, whereas net profit was recorded at Rs 4,001 crores in FY24, up 37.31% from Rs 2,914 crores during the same time the previous year. A 9% spike from 834,895 (standalone) in FY 2022-2023 to 9,12,732 (standalone) in FY 2023-2024 was recorded by Royal Enfield in motorcycle sales.

Eicher Motors Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said EICHERMOT is presently trading at Rs 4636, with the stock price fluctuating in the range of 4545 to 4700. It is anticipated to remain sideways within this range. If the price breaches the 4747 level, there is potential for it to further ascend to the 4999 level in the short run, while support is observed near the 4492 level.

The Relative Strength Index (RSI) is currently at 69.1 and is trending upward, indicating a significant upside movement. The stock has shown resilience by rebounding from robust support at 4500, aligned closely with its 20-day Exponential Moving Average (EMA) levels in the Daily Chart. Significantly, it trades above the 50-day and 100-day Exponential Moving Average (EMA), Indicating buying strength.

The overall trend for EICHERMOT is sideways to Bullish, supported by various technical indicators, reinforcing the optimistic outlook. Given these signals, there is a possibility for the stock to achieve a target price of Rs 4999 in the near term.

It is advisable to consider buying on dips, particularly around Rs 4600, to capitalize on potential retracements in the stock price. To prudently manage risk, implementing a stop-loss (SL) at Rs 4492 is recommended. This precautionary measure is crucial to safeguard investments in the event of an unexpected market reversal.

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.