Small Cap Debt-Free IT Stock Okays Rs 15/Share Dividend; Scrip Hit 52W-High: Buy?

Xchanging Solutions is a small-cap IT company which closed today on the BSE at a market cap of Rs 1,671.06 Cr. The scrip today opened on the BSE at Rs 139.80 apiece and reached a fresh 52-week-high of Rs 154.50 during the session. Later the stock ended at Rs 150 apiece by adding an upside gain of 15.92%. The debt-free company's financial results for the quarter ending December 31, 2023, together with the announcement of a dividend of Rs 15 per share for FY24, led to a surge in the stock price.

Xchanging Solutions Dividend

The Board of Directors approved "The payment of 2nd Interim dividend of INR 15/- (Rupees Fifteen only) (150%) per equity share of face value of INR 10/- each (Rupees Ten only) for the financial year ending March 31, 2024. Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, fixed Friday, February 23, 2024 as the "RECORD DATE" for the purpose of determining entitlement of Equity Shareholders for receipt of 2nd Interim dividend for the FY 2023-2024. The 2nd Interim dividend for the FY 2023-2024 will be paid on and before Thursday, March 14, 2024 to those shareholders whose name appears in the Register of Members of the Company or in the list of beneficial owners maintained by the Depositories as on Friday, February 23, 2024," said Xchanging Solutions in a stock exchange filing.

Xchanging Solutions Financials

The company's net sales on a stand-alone basis decreased by 2.14% to Rs. 8.70 crore in the December 2023 quarter from Rs. 8.89 crore in the same quarter the previous year. In Q3FY24, its standalone net profit increased to Rs. 184.76 crore from Rs. 1.93 crore in Q3FY23, a 9473.06% jump. EBITDA climbed by 1888.83% from Rs. 3.76 crore in the year-ago quarter to Rs. 74.78 crore in the quarter under review.

Xchanging Solutions Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said XCHANGING is presently trading at an all-time high level of Rs 150. On February 14th, the stock surged 20%, hitting the upper circuit. This surge is indicative of a Rounding Bottom pattern breakout and is accompanied by substantial trading volume on the weekly chart. Market expectations point to the potential for further upward movement, with projected targets set at Rs 200 and Rs 220. On the downside, robust support is observed near Rs 124.

Moreover, XCHANGING is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, indicating a robust bullish momentum and implying the possibility of sustained upward price action. The Relative Strength Index (RSI) stands at 73.3, confirming an increase in buying momentum and signaling an upward trajectory.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 124 to safeguard the investment against unexpected market reversals. A prudent strategy involves considering buying opportunities on market dips at levels of Rs 134.

In summary, based on technical analysis and prevailing market conditions, XCHANGING presents a promising buying opportunity for those targeting Rs 200 and Rs 220 price objectives, contingent upon the implementation of prudent risk management measures.

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.