Rs 95/Share Dividend: Record Date On 28th June; Buy Mahindra Group Stock To Be Eligible?

In the capital goods industry, Swaraj Engines is a small-cap firm. As of Thursday's closing session, its market valuation was Rs 2,910.54 Cr. As a part of the Mahindra & Mahindra group, Swaraj Engines produces and distributes diesel engines of 22-65 HP and more. In addition to announcing today's financial results for the fourth quarter and year ended March 31, 2024, the company additionally issued a record-breaking dividend of Rs 95 per share to eligible shareholders. Swaraj Engines' shares ended the day at Rs 2396.05, down 1.14% on the BSE. The stock's 52-week-high level was recorded at Rs 2,647.90 on (01/03/2024) and the 52-week-low level touched at Rs 1,526.10 on (19/04/2023).

Swaraj Engines Dividend

"The Board, while approving the annual accounts, has recommended an equity dividend of 950 % (Rs. 95 per share) for the financial year ended 31st March, 2024. The Register of Members and Share Transfer Books of the Company will remain closed from Saturday, 29th June, 2024 to Friday, 5th July, 2024 (both days inclusive) for the purpose of determining the Members eligible to receive the dividend, if declared by the shareholders at the ensuing Annual General Meeting ("AGM") scheduled to be held on Thursday, 18th July, 2024. The dividend, if declared at the AGM, will be paid/dispatched by the Company in permitted modes after Thursday, 18th July, 2024 within the stipulated timelines," said Swaraj Engines in a regulatory filing today.

As per the data available on BSE, 28th June 2024 has been fixed as the ex-date for the purpose of the above-mentioned dividend which will also be its record date due to the T+1 settlement mechanism.

Swaraj Engines Q4 Results

Swaraj Engines recorded a 2.5% drop in revenue for the March 2024 quarter compared to the same period last year, when it was Rs 360 crore. The net profit of Swaraj Engines climbed by 0.63% to Rs 35.18 crore in the quarter that ended in March 2024 compared to Rs 34.96 crore in the quarter that ended in March 2023. In addition, EBITDA (earnings before interest, tax, depreciation, and amortization) dropped by 2% YoY to Rs 48 crore, but the margin was constant at 13.7% from 13.6% in the previous fiscal.

Net profit for the full financial; year jumped to Rs 137.87 crore from Rs 133.61 crore in the year that ended in March 2023, a 3.19% growth. In comparison to the previous year ended March 2023, when sales were Rs 1421.82 crore, they decreased by 0.18% to Rs 1419.24 crore in the year ended March 2024. Sales of the company's 04 engines were 35,344, up from 34,841 units sold in the same period the previous year. In addition to a 50 basis point increase in margin, the firm reported a PBIT of Rs. 44.10 crores as opposed to Rs. 43.42 crores the previous year. In FY24, 1,38,761 engines were sold, compared to 1,37,005 units sold in the previous fiscal year.

Swaraj Engines Share Price Target

"Swaraj Engines Limited is an Indian small-cap company that manufactures diesel engines for fitment into Swaraj tractors, manufactured by parent company Mahindra & Mahindra Ltd. The stock is currently displaying positive momentum in the market, with a potential for an upside. This stock has also offered a substantial 56% return in a year, further adding to its appeal. Meanwhile, it holds a PE ratio of 21.38 compared to the industry PE of 61.23. Judging by the current momentum, individuals may consider buying this stock in the Rs. 2320-2410 range for a target of Rs. 2650-3000. To protect gains, I recommend setting a stop loss at Rs. 2040 for this stock," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

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.