Rs.7.39 Dividend: Payable On Or Before August 15; What Should Traders Do?

With production facilities located in Tamil Nadu, Maharashtra, Uttar Pradesh, and Uttarakhand, Wheels India is a prominent manufacturer of air suspension systems for trucks and buses, industrial components for the construction and windmill industries, and wheels for trucks, agricultural tractors, passenger vehicles, and construction equipment.

Wheels India Dividend

"The Board also recommended a dividend of Rs.7.39/- (73.90%) per equity share of Rs.10/- each for the year ended March 31, 2024, subject to approval of the members of the Company at the ensuing AGM. The dividend, if approved by the members, shall be paid on or before August 15, 2024," said the company in a stock exchange filing.

Wheels India Financials

Wheels India reported a 64.3% rise in net profit for the fourth quarter that ended on March 31, 2024, to Rs. 36.8 crores, from Rs. 22.4 crores in the same period the previous year, thanks to a robust product mix. In comparison to Rs. 1172 crores in the Q4 ended March 31, 2023, the firm reported revenue of Rs. 1167 crores for the Q4 ended March 31, 2024.

The net profit for the entire year ending March 31, 2024, was Rs. 67.9 crores, an 8.6% rise over the Rs. 62.5 crores recorded in the prior year that ended March 31, 2023. The total revenue for the year ending March 31, 2024, was Rs. 4619 crores, up 6.3% from the previous year's revenue of Rs. 4345 crores.

Srivats Ram, MD, Wheels India Ltd., said, "Exports did well for us in FY24 registering a 24.5 % growth. Earthmover wheels, aluminium wheels and hydraulic cylinders were the prime drivers of growth on the export front. The company's air suspension business did well along with growth in the bus market."

"We have been able to profitably ramp up machining of windmill castings and will continue to grow this. Another area with a lot of promise for growth, both in the domestic and export markets, is hydraulic cylinders. We are cautiously optimistic about the prospects for FY25. New programmes with global customers are likely to begin in Q4 of this year," he further commented on the outlook.

Wheels India Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "WHEELS INDIA is currently trading at 714 levels and has shown a bullish reversal with a runaway gap following its quarterly results. This gap signifies strong positive momentum in the stock. Currently, the stock is trading above its short-term (20 Day), medium-term (50 Day), and long-term (200 Day) Exponential Moving Averages (EMAs), indicating sustained strength across different time frames. On the higher side, there is a minor resistance at 760 levels. Should the stock surpass this resistance, it has the potential to move towards the next resistance level of 815. This progression highlights the stock's bullish potential in the near term."

"For investors holding the stock from lower levels, it is advisable to book partial profits at current levels and trail the stop loss at 660 to protect gains. This strategy ensures that profits are secured while still allowing participation in further upside potential if the stock continues to perform well. Overall, WHEELS INDIA appears well-positioned for further gains, supported by strong technical indicators and positive momentum," he recommended.

Disclaimer

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