Share Price Rs 1.28 Lakh: Record Level Dividend of Rs 194, Ex-Date - 25 July; Buy For The Cash Payout?

The largest tyre manufacturer in India is MRF. MRF was founded in 1946 and has its headquarters in Chennai. It exports tyres to more than 90 foreign markets. The highest-ever dividend of Rs 194 for FY24, for which the ex-dividend date is July 25, will be the focus of attention for the price of the stock at Rs 128935 in the upcoming sessions.

MRF Dividend

"Two interim dividends of Rs 3/- each per share (30% each) for the financial year ended 31st March, 2024 were declared by the Board of Directors on 3rd November, 2023 and on 9th February, 2024. The Board of Directors is pleased to recommend a final dividend of Rs 194/- (1940%) per share of Rs 10 each on the paid up equity share capital of the Company, for consideration and approval of the shareholders at the forthcoming Annual General Meeting which shall be subject to deduction of applicable income tax at source. The total dividend for the financial year ended 31st March, 2024 works out to Rs 200/- (2000%) per share of Rs 10 each. The above dividend declared by the Company is in accordance with the dividend distribution policy of the Company. The Directors recommend that after considering provision for taxation and the dividend paid during the year, an amount of Rs 1967 crores be transferred to general reserve. With this, the Company's Reserves and Surplus (including other comprehensive income) stands at Rs 16436 crores," said MRF in its annual report.

MRF Dividend Record Date

"The register of members and transfer books of the Company will remain closed from 26.07.2024 to 01.08.2024 both days inclusive, for the purpose of payment of final dividend. Upon declaration of final dividend as recommended by the Directors payment of dividend, subject to deduction of tax at source, will be made on or after 23.08.2024 to the shareholders whose names appear on the Company's Register of Members on 25.07.2024," stated the company.

MRF Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "MRF is currently trading at 128951.05 levels and appears to be in a consolidation phase within the range of 123111-131000. This range aligns with a robust support zone at 124700, encompassing within the support range of the stock. The convergence of these factors suggests a significant level of stability and a potential opportunity for traders and investors. The consolidation within this range reflects a delicate equilibrium between buying and selling pressures, indicating a period of price discovery and market participants reassessing their positions. It is noteworthy that the support zone encompasses the area just below the 100-Day EMA and 200-Day EMA, This indicates a region where the price is likely to find support, potentially leading to a rebound in the stock's value."

"A potential breakout above the upper boundary of this consolidation range, specifically above 131111 levels, could act as a catalyst for a bullish move. In such a scenario, traders might look to capitalize on the upward momentum, with a target set at 137500 and possibly beyond. The Momentum indicator, Relative Strength Index (RSI), currently stands at 55.60 levels, signalling a neutral stance. Traders and investors are advised to closely monitor the price action and be vigilant for a potential breakout. The support range, particularly around 124700 levels, could serve as a strategic entry or exit point. Overall, the analysis points towards a cautiously optimistic outlook for MRF, contingent on a decisive breakout above the upper boundary of the consolidation range," the analyst further recommended.

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.