TVS Group Large Cap Stock To Turn Ex-Dividend Tomorrow For 268%: Buy?

A large-cap company in the consumer discretionary industry is Sundram Fasteners Ltd. Since its founding in 1966, Sundram Fasteners Limited has developed into a world leader in the production of precision components for the windmill, aircraft, automobile, and infrastructure industries. The company announced its Q2 earnings as well as a 268% interim dividend for FY24. The stock is going to trade ex-dividend tomorrow, Thursday 16th November. So can traders consider investing in the stock to get eligible for the dividend payout, let's find out.

Sundram Fasteners Dividend

"We wish to inform you that the Board of Directors at their meeting held on November 3, 2023 has approved payment of interim dividend @ Rs 2.68 per share of Re 1/- each for the financial year ending March 31, 2024. The Interim Dividend approved by the Board of Directors will be paid on December 1, 2023 to those members whose names appear: a. As members on the Register of Members of the Company as on November 16, 2023 after giving effect to all valid transmission or transposition requests lodged with the Company for the shares held in physical form up to the closing hours of business on November 16, 2023. b. As beneficial owners as per the list to be furnished by NSDL/CDSL as at the closing hours of business on November 16, 2023," said Sundram Fasteners in a stock exchange filing.

Sundram Fasteners Q2 Results

For the quarter ended September 30, 2023, Sundram Fasteners Ltd (SFL) recorded a 5% growth in its standalone net profit to Rs 118 crore, up from Rs 112 crore in the same period the previous year. In Q2FY24, revenue from operations was Rs 1,234 crore, compared to Rs 1,219 crore in Q2FY23. Compared to the same period in the previous year, when EBITDA was Rs 193 crore, it was Rs 205 crore for the September 2023 quarter. Compared to the same period last year, the company's EBITDA margin was 15.8%; however, it was 16.5% in the quarter under review.

For the second quarter that ended on September 30, 2023, Sundram Fasteners (SFL) reported a 14% increase in total net profit to Rs 133.05 crore, up from Rs 116.78 crore in the same period the previous year. For Q2FY24, the company's consolidated revenue from operations was Rs 1,421.82 crore, up 1.4% from Rs 1,401.65 crore in Q2FY23.

Sundram Fasteners Share Price Target

Mandar Bhojane-Equity Research Analyst at Choice Broking said, "SUNDRMFAST is presently trading at the 1265 levels. On the daily chart, the price demonstrates a sideways trend, fluctuating within the range of 1235 to 1320 levels. While the price remains within this range, it is likely to persist in its sideways movement. Nevertheless, a breakout above the 1235 level could signify a shift in bullish momentum, suggesting a potential short-run target at 1412. Conversely, support is expected around the 1235 level, and a breach below this point might indicate a bearish outlook for the stock."

"Furthermore, the stock has crossed above its 100-day and 200-day Exponential Moving Averages (EMA) and closed above them, which is often considered a bullish sign. It is also trading above other key moving averages, further reinforcing the bullish sentiment. The Relative Strength Index (RSI) is presently at 47 and is on an upward trajectory, indicating increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) is displaying a positive crossover. This combination of technical factors suggests that SUNDRMFAST may have the potential to reach a target price of Rs 1412 in the near term," the analyst further added.

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.