Rs 35/Share Dividend: Automobile Stock To Trade Ex-Dividend Next Week For 1750% Dividend Payout

Hero Motocorp is a large-cap automobile company which recorded a market cap of Rs 61,953.91 Cr during Friday's closing session. The company has declared a final dividend payout of 1750% for FY23 and as per the data of BSE, 27 July 2023 is falling as the ex-dividend date for the stock. Investors need to be informed that the record date also falls on that day due to the company's T+1 settlement process.

Hero Motocorp Dividend

The Board of Directors approved "Recommendation of final dividend subject to approval of members @ 1750% i.e. Rs. 35 per share (face value of Rs. 2 per equity share). The dividend, if declared at the ensuing AGM, will be paid by September 8, 2023. Pursuant to Regulation 42 of Listing Regulations, the Register of Members and Share Transfer Books of the Company will remain closed from Friday, July 28, 2023 till Wednesday, August 09, 2023 (both days inclusive) for the purpose of 40th AGM and determining entitlement of the members for the final dividend (if declared at the AGM)," said Hero Motocorp in a stock exchange filing.

Hero Motocorp has announced an equity dividend of 5000% with a face value of Rs 2 equaling Rs 100 per share for the financial year ended March 2023. The dividend yield at the current share price of Rs 3100.15 is 3.22%. The company has a solid track record of dividend declarations during the past five years. Hero MotoCorp Ltd. has issued 38 dividends since July 17, 2001, according to data from Trendlyne.

Hero Motocorp Financials

Hero MotoCorp declared a standalone net profit of Rs 859 crore for the quarter ended March, representing a (YoY) rise of 37% over the Rs 627 crore recorded in the same quarter of FY22. In Q4FY23, revenue from operations totalled Rs 8,307 crore, which is a rise of 12% over the Rs 7421 crore recorded in Q4FY22. The EBIDTA margin for the fourth quarter was 13%, which is a rise of 190 basis points (bps) YoY. Sales-wise, the company sold 12.70 lakh motorcycles and scooters in Q4 FY23 compared to 11.89 lakh in the same quarter of FY22.

The company is yet to declare its Q1FY24 results. "Pursuant to Regulation 29 and other applicable Regulations of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Thursday, August 10, 2023, inter alia, to consider and approve the unaudited Standalone and Consolidated Financial Results for the quarter ended on June 30, 2023," said Hero Motocorp in a stock exchange filing.

Hero Motocorp Share Price

On Friday, the shares of Hero MotoCorp closed on the BSE at Rs 3100.15 apiece up by 0.41% from the previous close of Rs 3087.45. The stock made a 52-week-high of Rs 3,206.15 on (06/07/2023) and a 52-week-low of Rs 2,246.75 on (28/03/2023). During Q1FY24, the company recorded promoter shareholding of 34.78%, FIIs stake of 28.10%, DIIs stake of 27.28% and public stake of 9.85%.

Hero Motocorp Share Price Target

Commenting on the outlook of Hero Motocorp shares, Sumeet Bagadia, Executive Director of Choice Broking said, "HEROMOTOCO stock has rebounded from a solid support of 3049 levels which is close to 20 Day EMA levels. The stock is currently trading above all the important moving averages, indicating strength. Moreover, it is trading above the middle Bollinger band, and there are positive crossovers in both the RSI and MACD, suggesting a continued bullish trend in the near future. The sustained high trading volume indicates buying interest among short-term traders. Based on this technical analysis, one could consider entering a long position at the current market price (CMP) of 3102.05, for a potential upward movement towards 3250 levels in the coming days. To manage risk, a stop-loss (SL) level can be set at 3030 levels."

"Hero MotoCorp is looking good for initiating fresh long positions in the 3000 to 3130 range. Currently, the price is taking support at its 20 days EMA and there is a high probability of touching a new high in the coming days. The company's current PE(21) is lower than the sector's PE (61). RSI is in 60 and 69 at daily and weekly time frames respectively. All this could trigger investors' positive bias. Amid increased rural consumption it will be benefited too as it holds a major stake in this segment. We can expect targets from 3400 to 4500 in midterm. Stop loss at 2800 which is below its previous resistance (change in polarization)," said V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT).

Disclaimer

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