Tata Steel vs Tata Elxsi: Which Stock To Buy For Higher Dividend Payout of Up To Rs 70?

In the coming sessions, the two Tata group firms that will be the subject of attention are Tata Steel and Tata Elxsi. Tata Steel has declared a final dividend of Rs 3.60 per share in FY24 for which the record date is 21 June 2024 while Tata Elxsi has declared a final dividend of Rs 70 for which the ex-date is 25 June 2024. Let's look at the analyst recommendations below to see if those seeking dividend-paying Tata Group stocks could think about buying shares in Tata Steel and Tata Elxsi.

Tata Steel Upcoming Dividend 2024

"We are pleased to inform you that the Board of Directors of the Company, at its meeting held on May 29, 2024, has recommended a dividend of Rs.3.60 each per Ordinary Equity Share of face value Re.1/- each (360%), for the Financial Year ended March 31, 2024. As you are aware, as per the provisions of the Income Tax Act, 1961 (Act), dividend paid or distributed by a Company shall be taxable at the hands of shareholders. Therefore, the Company is required to deduct tax at source (TDS) at the rates applicable on the amount distributed to the shareholders, if approved at the Annual General Meeting (AGM) of the Company scheduled to be held on Monday, July 15, 2024. The aforesaid dividend, once approved by the shareholders, will be paid on and from Friday, July 19, 2024," said Tata Steel in a regulatory filing.

The record date to determine the members eligible to receive the dividend for the fiscal year that ended on March 31, 2024, is set by the Board for Friday, June 21, 2024.

Tata Steel Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "TATASTEEL is currently trading near its all-time high at 182. The stock has demonstrated a strong rally from lower levels, forming a pattern of higher highs and higher lows, which indicates a robust uptrend. The stock has found support around the 177 and 175 levels, establishing these as reliable support zones. If the price closes above the 184 level, it could potentially rise further to 194. The Relative Strength Index (RSI) for TATASTEEL is at 60.7, indicating a potential upside."

"Additionally, the Stochastic RSI shows a positive crossover, further confirming the bullish sentiment. Notably, the stock is trading above all significant moving averages, highlighting its overall strength. Considering these technical indicators and the current market conditions, it appears to be an opportune moment to consider buying TATASTEEL at the current market price of 182. A reasonable target for this trade could be set at 194, with a recommended stop-loss at 174 to manage potential risks," the analyst recommended.

Tata Elxsi Upcoming Dividend 2024

"The Board of Directors of the Company had recommended a dividend of Rs. 70 per equity share of face value of Rs.10 each (700%) for approval of shareholders at the 35th AGM. The dividend, if approved, will be paid on or after July 16, 2024, subject to deduction of tax as under: a. In respect of shares held in physical mode, the dividends will be payable to those shareholders whose names appear in the Register of Members as at the closure of business hours on Tuesday, June 25, 2024. b. In respect of shares held in demat mode, dividends will be payable to those shareholders whose names appear in the list of beneficial owners as at the closure of business hours on Tuesday, June 25, 2024, furnished by the Depositories," said Tata Elxsi in a stock exchange filing.

Tata Elxsi Share Price Target

KKunal V Parar, - VP of Technical Research and Algo at Choice Broking said, "Based on technical analysis, the stock has displayed several bullish signals across multiple timeframes. The stock has been consolidating in a Falling Wedge pattern on the daily chart, indicating a potential bullish reversal upon a breakout above the upper trendline of the wedge. This pattern typically suggests that despite the recent downward movement, the stock might reverse its trend upward upon confirmation of a breakout. On the weekly chart, the stock has formed a Hammer candlestick pattern, which is a bullish reversal signal. This pattern suggests that after a period of decline, buyers have stepped in to lift the stock higher, potentially indicating a trend reversal to the upside."

"Hourly analysis shows the stock trading within an upward-rising channel. This pattern reflects sustained positive momentum and suggests that the stock has been consistently making higher highs and higher lows, reinforcing a bullish bias. RSI Indicator (Daily Momentum). The Relative Strength Index (RSI), a momentum oscillator, is trending above its 50 mark on the daily chart. This indicates that the stock's upward momentum is strong and that buyers are in control, supporting the potential for further upside movement," the analyst added.

"Based on the above technical structure, If the stock breaks out above the upper trendline of the Falling Wedge formation, it could trigger a bullish rally. The projected upside targets are in the range of 8200 to 8580, while a strong support level is observed around 6800, which could act as a key level to monitor for downside protection. Overall, the combination of bullish chart patterns (Falling Wedge and Hammer Candlestick), the upward rising channel, and positive RSI momentum suggest a favourable outlook for the stock. Traders and investors may consider buying opportunities on a confirmed breakout above the Falling Wedge pattern, targeting the specified upside levels while managing risk around the identified support level," KKunal V Parar 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.