IT Stock Declares Special Dividend Of Rs 18/Share, ICICI Direct Expects 15% Return, Buy

Leading IT Consulting & Software company Tech Mahindra Ltd declared special dividend of Rs 18 per share for its shareholders on Tuesday, November 1, 2022. The large cap company has a market capitalisation of Rs 1,05,276.60 crore. Leading brokerage ICICI Direct has recommended investors to buy the stock with a target price of Rs 1240 and a potential return of up to 15% in 12 months period.

Check key takeaways pertaining to dividend and brokerage's opinion about the stock below:

Tech Mahindra Declares 18 Per Share Special Dividend

The board of directors held a meeting on November 1, 2022 and declared special dividend for its shareholder.

The company informed the BSE, "Pursuant to Regulation 33 read with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform that the Board of Directors of the Company at its meeting held today: 1. Approved the Audited financial results and consolidated financial results of the Company for the second quarter and half year ended 30th September, 2022, together with Auditors Report thereon. 2. Declared Special dividend of Rs. 18/- per equity share of Rs. 5/- each i.e. 360% of the face value. 3. Fixed 10th November, 2022 as the Record Date for determining the members entitled to receive the Special Interim dividend. The Special dividend shall be paid on Thursday, 24th November, 2022 to equity shareholders of the Company whose names appear on the Register of Members of the Company or in the records of Depositories as beneficial owners of the shares as on Thursday, 10th November, 2022."

2. Tech Mahindra Stock Outlook

The current market price of Tech Mahindra is Rs 1081 apiece with 52-week high at Rs 1837 apiece and 52-week low at Rs 944 apiece, respectively. The company has a market capitalisation of Rs 1,05,276 crore.

3. Tech Mahindra Return

The stock has given a maximum return of 131% in last 5-years, 42% in last 3-years, and negative 27% in last 1-year.

4. Valuation

According to ICICI Direct, "TechM's share price has grown by ~2.6x over the past five years (from ~Rs 489 in November 2017 to ~Rs 1,071 levels in November 2022). We maintain our BUY rating on the stock. We value TechM at Rs 1240 i.e. 14x P/E on FY25E EPS."

5. About Tech Mahindra

Tech Mahindra (TechM) has over 1.2 lakh employees across 90 countries serving 1000+ clients with higher exposure to telecom (40% of revenues). Apart from telecom, the company caters to BFSI, manufacturing & retail. TechM has grown organically & inorganically (dollar revenue CAGR of 6.6% over the past five years)

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.