TCS To Trade Ex-Dividend This Week: What Should Be Your Trade Call For 900% Dividend Payout?

This week's attention will be on IT behemoth Tata Consultancy Services (TCS), whose shares will trade ex-dividend on October 19. For FY24, TCS has announced an interim dividend of 900%, and Thursday, October 19th has been set as the record date. Let's find out what traders should do for TCS before the dividend payment.

TCS Dividend

"We would like to inform you that at the Board Meeting held today, the Directors have declared second interim dividend of Rs 9 per equity share of Rs 1 each of the company. The second interim dividend shall be paid on Tuesday, November 7, 2023, to the equity shareholders of the Company, whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Thursday, October 19, 2023, which is the Record Date fixed for the purpose," said TCS in a stock exchange filing.

TCS Financials

The second quarter of fiscal year 24 (Q2FY24) results for Tata Consultancy Services (TCS) have been released. Net profit jumped by about 9% YoY to Rs 11,432 crore from Rs 10,431 crore in Q2FY23. The company's consolidated revenue for the second quarter was Rs 59,692 crore, up 7.9% from the Rs 55,309 crore it reported in the same quarter of FY23.

Additionally, the company has accepted a plan to buy back up to 4,09,63,855 of its equity shares for a total of not more than Rs 17,000 crore, or (1.12) per cent of the total paid-up equity share capital, at a price of Rs 4,150 per equity share. Order wins for TCS in Q2 were $11.2 billion whereas Tata Consultancy Services' attrition rate dropped from 17.7% in the prior quarter to 14.9% in Q2FY24.

TCS Share Price Target

Mandar Bhojane, Equity Research Analyst at Choice Broking said, "On the daily chart, Tata Consultancy Services (TCS) has exhibited an interesting price action pattern. The stock has tested the upper channel trend line, experiencing profit booking at the 3570 level. Currently, TCS is trading near an upward trajectory at the 3545 level, indicating a potential continuation of the bullish trend. The stock has been trading in a sideways range between 3485 and 3666."

The analyst went on to add "Furthermore, TCS is trading above critical Exponential Moving Averages (EMAs), including the 50-day, 100-day, and 200-day EMAs. This suggests strong bullish momentum and the possibility of further upward price movement. Additionally, there's a minor resistance level at 3570, and if this level is breached, it could act as a trigger for further upward movement, indicating the stock's potential to move higher."

"On the flip side, the 3500-3450 range acts as a strong demand zone, serving as crucial support for the stock. The Relative Strength Index (RSI) is currently at 50, indicating range-bound, sideways price action in the stock. Investors should exercise caution and closely monitor the stock's performance, particularly if it falls below the 3450 level, as this could negate the favorable outlook. In the short term, a target of 3700 appears to be achievable, given the current technical analysis and bullish indicators," Mandar Bhojane stated.

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.