Rs 8.85/Share Dividend: PSU Stock To Hit Ex-Date In 2 Days On April 2; Buy?

Founded on July 16, 1970, in Hyderabad, Telangana, Bharat Dynamics Limited (BDL) is a Public Sector Undertaking under the Ministry of Defence, Government of India. Its primary purpose is to serve as the production base for associated equipment and guided missile systems for the Indian Armed Forces. BDL has four production facilities: one is in Andhra Pradesh (Visakhapatnam), while the other three are in Telangana State (Hyderabad, Bhanur, and Ibrahimpatnam). The shares of Miniratna PSU company will be in focus this week as the stock will trade ex-dividend on 2nd April 2024 for Rs 8.85 per share payout. Bharat Dynamics Ltd closed on the BSE at Rs 1751.30 apiece on 28th March with a market cap of Rs 32,098.05 Cr. The scrip reached a 52-week-high of Rs 1,984.40 on (27/02/2024) and a 52-week-low of Rs 900.05 on (29/03/2023).

Bharat Dynamics Dividend

The Board of Directors of the company at their meeting held on 21 March 2024 approved an interim dividend of Rs. 8.85 per equity share of Rs. 10 each fully paid-up for the financial year 2023-24. 02 April 2024 has been fixed as the "Record Date" for the purpose of payment of interim dividend on equity shares for FY24 and the payment of interim dividend will be completed on and before 18 April 2024, said BDL in a regulatory filing.

Bharat Dynamics Stock Split

The Board of Directors "Approved the sub-division/ split of existing 1 (One) Equity Share of face value of Rs. 10/- (Rupees Ten Only) each fully paid up into 2 (Two) Equity Shares of face value of Rs. 5/- (Rupees Five Only) each fully paid up, subject to shareholders' approval. The record date for the purpose of above sub-division/ split of Equity Shares shall be decided after obtaining approval for sub-division/ split from the shareholders through postal ballot electronic voting process and will be intimated in due course," said Bharat Dynamics in a stock exchange filing on 21/03/2024.

The rationale behind the 1:2 stock split is to comply with DIPAM guidelines on capital restructuring; (ii) to encourage wider participation of small investors; and (iii) to enhance liquidity of the equity shares of the company in the stock market according to BDL.

Bharat Dynamics News

The Board of Directors of BDL recently appointed Shri G. Gayatri Prasad, General Manager (Finance) as the Chief Financial Officer (CFO) of the company on 21st March, consequent to the cessation of Shri N. Srinivasulu as Director (Finance) and Chief Financial Officer on 31 January 2024.

Bharat Dynamics Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said BDL (Bharat Dynamics Limited) is currently trading at 1751.90 levels, showcasing robust technical characteristics. The stock has established a formidable support level at 1565, from which it has experienced a notable rebound, forming a pattern of higher highs and higher lows on daily charts. This pattern suggests underlying strength in the stock's price action.

Moreover, BDL is trading above key moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) Exponential Moving Averages (EMA), further affirming its bullish momentum.

Investors holding positions from lower levels are advised to maintain their positions, with a trailing stop loss set at 1565 levels to safeguard profits. These investors may target a price objective of 1980 and higher.

For fresh investment opportunities, investors may consider entering the market during price dips near 1700 levels, which aligns closely with the 50-day EMA. Setting a stop loss at 1565 levels can help mitigate risk, while potential targets for these fresh investments also include 1980 and beyond.

Overall, BDL presents a compelling opportunity for investors, supported by its strong technical foundation and potential for further upside movement.

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.