Tata Group-backed 79-year-old auto giant, Tata Motors has announced a massive dividends reward for two types of investors aka those who hold its ordinary shares and the ones holding DVR shares. The final dividend payout for FY24 is up to 300-310%, the highest in 14 years. The last time Tata Motors paid a huge dividend was in July 2011. The upcoming dividend is ahead of its split into two businesses, aka 1:2 split ratio.
Tata Motors Share Price:
Tata Motors share price ended at Rs 1046.85 apiece, up by 1.62% on BSE after market hours of Friday. The stock was nearing its 52-week high of Rs 1,065.60 apiece, while it is trading more than double the amount of its 52-week low of Rs 504.75 apiece.
In the trading week that ended on May 10, Tata Motors share price rose by 3%. The company's market cap is at Rs 3,47,945.62 crore.
Tata Motors Dividend:
The company announced a final dividend of 300% amounting to Rs 6 per share to investors holding its ordinary shares. The face value is Rs 2 each. The final dividend includes a Rs 3 per share normal dividend and a special dividend of Rs 3 each.
Tata Motors said, the dividend, if declared at the AGM, shall be paid to the eligible shareholders on or before June 28, 2024.
This dividend payout is higher by a whopping 200% from the final dividend payout of 100% valued at Rs 2 per share in FY23.
Tata Motors DVR Dividend:
Apart from dividends on ordinary shares, Tata Motors also announced a normal dividend of Rs 3.10 per share and a special dividend of Rs 3 per share for DVR investors. In total, the final dividend payout is 310% worth Rs 6.10 per share having a face value of Rs 2 each, higher than the dividend that ordinary shareholders will get.
Dividends for DVR shareholders are also going to be paid on or before June 28, 2024.
In FY23, Tata Motors DVR shareholders received a dividend of Rs 2.10 per share.
Tata Motors DVR is listed on both BSE and NSE. However, Tata Motors DVR has no brokerage coverage, zero buy or sell rating, and it does not have any fundamentals such as profits or revenue. Tata Motors DVR is simply riding on the wagon of Tata Motors. So, the DVR is more prone to the sentiment that revolves around Tata Motors' share price.
On BSE, Tata Motors DVR shares ended at Rs 706.90 apiece, up by 2.18% with a market cap of Rs 35,946.07 crore. The stock is near its 52-week high of Rs 712.90 apiece.
How To Be Eligible For Dividends?
To be eligible for these benefits of Tata Motors and Tata Motors DVR, you must ensure to do two things. Firstly, maintain ownership of Tata Motors shares and DVRs. Secondly, keep track of the benefits.
In generic terms, Motilal Oswal explained the steps to be eligible for dividends. These are:
Maintain Ownership: Hold onto your company stock shares and avoid selling them before the ex-dividend date.
Stay Informed: Keep track of the company's dividend announcements, ex-dividend dates, and record dates to plan your investment strategy accordingly.
Tata Motors is yet to announce its record date for payouts. However, the payment will be made on or before June 28.
Tata Motors Earnings:
In Q4 FY24, TML delivered a strong performance with revenue of Rs 120.0K Cr (up 13.3%), EBITDA at Rs 17.9K Cr (up 26.6%) and EBIT of Rs 11.0K Cr (+Rs 3.8K Cr) with all three auto businesses delivering a strong performance. PBT (bei) stood at Rs 9.5K Cr (+Rs 4.4K Cr) and the net profit was Rs 17.5K Cr (+Rs 12.0K Cr). Net automotive debt was reduced further to Rs 16.0K Cr.
Tata Motors 1:2 Split:
Tata Motors board has approved the demerger of the company into two separate listed companies housing A) the Commercial Vehicles business and its related investments in one entity and B) the Passenger Vehicles businesses including PV, EV, JLR, and its related investments in another entity.
What Should Investors Do?
As per Trendlyne data, the consensus recommendation from 29 analysts for Tata Motors Ltd. is HOLD.
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