Debt-Free IT Stock Declares 2nd Rs 7.50/Share Interim Dividend In FY24: Buy?

Ksolves India Ltd is a small-cap company in the IT sector which recorded a market cap of Rs 1,606.90 Cr during Friday's closing session. The stock opened today on the BSE at Rs 1426.80 apiece and rallied to hit a fresh 52-week-high of Rs 1,467.65 during the session logging in a gain of 6.85% from the previous close of Rs 1373.50.

Next week, Ksolves India will be the subject of attention due to its status as a debt-free company, its multibagger stock character, and the announcement of its second interim dividend of Rs 7.50 per share for FY24, along with the firm's financial results for the quarter that ended on December 31, 2023.

Ksolves India Dividend

"We would like to inform you that the Board of Directors of the Company at its meeting held today i.e., Thursday, January 18, 2024, inter-alia considered and declared 2nd interim dividend of Rs.7.50/- per share for financial year 2023-24 on its fully paid-up Equity share Capital of the Company. The Dividend shall be paid within the statutory time limit to the equity shareholders of the Company, whose names would appear on the Register of Members of the Company as on the Record date fixed i.e. January 26, 2024," said Ksolves India in a stock exchange filing.

Ksolves India Financials

According to the firm, from Rs 20.55 cr in Q3FY23 to Rs 28.42 cr in Q3FY24, its consolidated revenue from operations climbed 38.3% YoY. The IT company's profit after tax (PAT) climbed 44.7% YoY to Rs 8.94 cr in the quarter under review from Rs 6.18 cr in the same quarter last year. Q3 Earnings per Share (EPS) climbed to Rs. 7.54 from Rs. 5.21 during the corresponding period in the previous year.

Ksolves India Share Price Target

Ksolves have declared a cash dividend of 7.50 per share. It is its 2nd interim DY in the current financial year. The company has delivered 214.8% returns in just 1 year. Now it is trading with a higher PE at 50.74 which is 40% higher than its sector's PE ratio.

Currently, the stock is trading at the ATH with RSI 66 at daily, 73 at weekly and 83 at monthly time frame.Considering it in the short and mid-term investors can initiate fresh longs at the current range of 1350 to 1375 and expect targets from 1600 to 2150. Holding period 2 weeks to 4 months to be considered and week stop loss at 1000. Breakout is possible in its daily timeframe. Not seeing any reversal signal even if it is trading near its lifetime high, suggested VLA Ambala (SEBI REGISTERED RA) while reviewing this stock.

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.