50% To 125% Dividend Payout: 1 IT, 1 Steel Stocks Trade Ex-Dividend O 0ctober 30; Do You Own Any?

Happiest Minds Technologies and Ramkrishna Forgings are the only two stocks that are trading ex-dividend on October 30th for interim dividend payout of 50% to as high as 125% for shareholders in current fiscal. Interestingly, on the ex-dividend day, Happiest Minds traded in red, on the contrary Ramkrishna Forgings were performing on a positive note.

1. Happiest Minds:

This software consulting firm, Happiest Minds Technologies declared an interim dividend of Rs 2.50 per share having a face value of Re 2 each for FY24. The record date for the interim dividend has been fixed on October 30, 2023, and the dividend will be paid on and after November 13, 2023, to the equity shareholders of the Company whose names appear in the Register of Members of the Company or the records of Depositories as beneficial owners of shares as on the aforesaid record date.

The dividend payout in percentage terms was 125% on interim basis for current fiscal.

In Q2FY24, the company's net profit fell by 1.6% YoY to Rs 58.46 crore. However, revenue from operations stood at Rs 406.62 crore, up by 14.4% YoY and 4% QoQ. Notably, the company's EBITDA came in at Rs 104.82 crore, up by 11.1% YoY and 1.8% QoQ in the quarter.

On Monday, the stock traded at Rs 829.80 apiece on BSE, marginally down from the previous closing price. The stock was near its volume-weighted average price (VWAP) of Rs 828.17 apiece on the exchange.

After the Q2 earnings report, Choice Broking on Happiest Minds said, "Company has expertise in core and disruptive technologies like cloud, data, analytics, AI, DevOps, and Computer vision thereby serving their customer's digital transformation requirements. They continue to make progress on their GenAI strategy engaging with multiple customers in formulating and implementing their GenAI roadmap. We have introduced FY26E and expect Revenue/EBIT/PAT to grow at a CAGR of 18.4%/19.9%/20.9% respectively over FY23-FY26E. We maintain our ADD rating and arrive at a revised target price of INR920 implying a PE of 40x on FY26E EPS of INR23."

2. Ramkrishna Forgings:

Unlike Happiest Minds, Ramkrishna Forgings traded on a bullish nore. The stock performed at Rs 630.20 apiece, up by 2.31% on BSE with a market cap of over Rs 10,076 crore. The stock was in the range of Rs 638 apiece to Rs 616. apiece respectively.

Ramkrishna declared 1st interim dividend of Re 1 per share having a face value of Rs 2 each for the financial year FY24. It fixed October 30 as the record date for payment of the 1st Interim Dividend for the Financial Year 2023-24 to be paid to the eligible shareholders. Hence, the stock will trade ex-dividend on October 30th as well. In percentage terms, the dividend payout was 50%.

The company plans to pay the dividend within 30 days from the date of declaration. The same is subject to TDS.

In Q2FY24, the company posted a consolidated net profit of Rs 82.2 crore as against Rs 67.23 crore in Q2FY23 and Rs 78.53 crore in Q1FY24. Revenue from operations stood at Rs 981.49 crore in the quarter, as against Rs 824.44 crore in Q2 of FY23, and Rs 892.33 crore in Q1FY24.

The ex-dividend date is the day when the price of the equity share of the listed company gets adjusted for the dividend payout. Dividends are generally distributed in a certain proportion by listed companies from their net profits earned in a respective financial year.

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