Rs. 60/Share Dividend: Record Date On 28 June; Buy The Bajaj Group Stock For 600% Payout?

The current manufacturing activity of Maharashtra Scooters is the production of pressure die casting dies, castings, jigs, and fixtures, mostly for the two- and three-wheeler sector among other industries. Listed on both the BSE Limited and the National Stock Exchange of India Limited, Maharashtra Scooters Limited is a subsidiary of Bajaj Holdings and Investment Limited. Along with a dividend of 600% of the face value of Rs. 10, the firm has released its financial results for the quarter and year that ended on March 31, 2024.

Maharashtra Scooters Dividend

"Kindly further note that final dividend of Rs. 60 per share (600%) of face value of Rs. 10 on equity shares of the Company has been recommended by the Board of Directors today for the financial year ended 31 March 2024. The said dividend, if declared by the shareholders at the ensuing Annual General Meeting, will be credited / dispatched on 26 July 2024 and/or 27 July 2024. Further, pursuant to Regulation 42 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, the record date for the purpose of determining the members eligible to receive the dividend for the financial year ended 31 March 2024, has been fixed as Friday, 28 June 2024," said Maharashtra Scooters in a regulatory filing.

Maharashtra Scooters Q4 Results

Maharashtra Scooters' net profit for the quarter ending March 2024 was Rs 0.10 crore, down 87.80% from Rs 0.82 crore in the year-ago quarter. In the quarter that ended in March 2024, sales fell 43.94% to Rs 5.18 crore from Rs 9.24 crore in the quarter that ended in March 2023. Net profit for the entire year climbed by 2.06% to Rs 199.31 crore in the year that ended in March 2024 from Rs 195.29 crore in the year that ended in March 2023. Sales for the year ended March 2024 climbed by 2.95% to Rs 222.73 crore from Rs 216.35 crore in the year ended March 2023.

Maharashtra Scooters Share Price Target

"A subsidiary of Bajaj Holdings and Investment Limited, Maharashtra Scooters Limited, which is engaged in the manufacture and sale of pressure die casting dies, jigs, and fixtures, for the automobile industry, has piqued the interest of investors following its Q4 earnings release. The small-cap company with 9,039 stocks has delivered 72.78% returns in a year and declared a dividend of 0.76%, nearly 2X of its 0.43% sector yield. This highlights its robust financial standing and profitability.

On the other hand, the stock has a PE of 45.19 against the sector's PE of 63.14, which suggests that the stock is currently undervalued. Based on these parameters, I hold a bullish view of this stock and recommend entering the stock at the Rs. 7800- 8100 price level for a target of Rs. 8480 to 10540. However, I would advise to set a stop loss at Rs. 7300 to avoid loss. Notably, if individuals notice that small profit booking activity occurs they should consider the development as a dip buying opportunity," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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