Rs 8 Standard & Rs 5 Special Dividend Declared; Buy The IT Stock For Rs 13/Share Payout?

D-Link (India) Ltd. is a small-cap information technology company with an RS 1,374 Cr. market capitalization. D-Link is a multinational company that offers networking solutions in 65 countries. As a division of D-Link Corporation, D-Link (India) Limited is in charge of marketing and distributing networking solutions throughout the SAARC and India regions. D-Link (India) Limited's shares are traded on the NSE and BSE stock markets. Currently, D-Link India has 17 branch offices across PAN India, equipped with cutting-edge service support infrastructure. On Monday, the shares of D-Link (India) reached a fresh 52-week-high at Rs 404.45 apiece and ended 13.76% higher at Rs 386.95 apiece after the Board of Directors declared a dividend payout of Rs 13 per share.

D-Link (India) Dividend

The Board of Directors "Recommended a dividend of Rs 8/- per equity share and a special dividend of Rs. 5/- per equity share totalling to Rs. 13/- per equity share (face value of Rs. 21- each) for the financial year ended March 31, 2024. The payment of dividend is subject to the approval of the shareholders in the ensuing Annual General Meeting of the Company, and it will be paid / dispatched within 30 days of such approval," said D-Link (India) in a regulatory filing.

"The Annual General Meeting (AGM) of the Company will be held on Wednesday, August 7, 2024. Pursuant to Section 91 of the Companies Act, 2013 and Regulation 42 of SEBI Listing Regulations, Register of Members & Share Transfer Books of the Company will remain closed from Saturday, July 13, 2024, to Friday, July 19, 2024 (both days inclusive) for payment of dividend on equity shares for the financial year ended March 31, 2024, if approved, by the members at the forthcoming Annual General Meeting," the company further informed to stock exchanges.

D-Link (India) Financials

The company reported a net income of Rs 338.23 Cr for the quarter ended 31st March 2024 which was Rs 314.13 Cr in the same quarter of the previous fiscal. Its net expenses stood at Rs 304.48 Cr which was Rs 285.90 Cr in the year-ago quarter. D-Link (India) said its EBIT reached Rs 33.75 Cr as against Rs 28.23 Cr in the same quarter of FY23. The company's net profit stood at Rs 25.10 Cr in Q4FY24 which was Rs 47.48 Cr in Q4FY23.

D-Link (India) Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said DLINKINDIA has exhibited remarkable strength in its recent price action, evidenced by a robust breakout above its all-time high levels and subsequent establishment of fresh highs at 381. This breakout was accompanied by significant trading volumes, highlighting strong bullish sentiment in the stock.

Moreover, the stock maintains a solid support level around 312, closely aligned with its 50-day Exponential Moving Average (EMA). This support level serves as a crucial reference point for investors, providing a foundation for price stability and indicating potential buying interest at lower levels.

DLINKINDIA is also trading above all key moving averages, underlining the underlying strength and positive momentum in the stock. This further reinforces the bullish outlook for DLINKINDIA.

Investors who entered positions at lower levels are advised to consider booking partial profits while trailing their stop loss to 312 to protect gains. Additionally, for those considering fresh investments, pullbacks towards the support-turned-resistance level near 330 could present favourable entry opportunities, with a stop loss placed near the support level at 312.