This Large-Cap Multibagger IT Service Stock Paying 270% Dividend, Turning Ex-Dividend Next Week

Dividend-paying stocks are a mechanism by which a company distributes a portion of its revenue to shareholders on a regular basis. The funds are typically transferred to a shareholder's brokerage or bank account directly. Investing in dividend stocks is rewarding as the investor earns some extra income without investing in the particular stock.

Mindtree, an LTI company, part of Larsen & Toubro group on April 2022, declared a final dividend of 270%. The company's revenue grew by 37.4% YoY to Rs. 2,897cr in Q4FY22, supported by broad-based momentum across segments. It also maintains a good track record of dividends. Let's dig in to know more about the Mindtree Dividends, and what the brokerage has said recently about the stock.

The company declared a dividend ending March 2022

The Board of directors of Mindtree Ltd declared a final dividend of Rs 270% i.e Rs 27 per share for the year ending March 2022 in its board meeting held early this FY.

The Board of Directors of the Company at its meeting held on Monday, April 18, 2022, in its filing to BSE has said, "Recommended a Final Dividend of 270% (Rs.27/- per equity share of face value of Rs.10/- each) for the financial year ended March 31, 2022. The Final Dividend is subject to the approval of Shareholders at the Twenty Third Annual General Meeting."

Ex-Dividend Date- The declared final dividend is turning ex-dividend on July 5, 2022.

Declared Dividend History & Track Record

The company has an excellent track record of dividend payout. In the last 5 years, the company maintained a good track record of dividend payout. Since 2007, its record of dividend payout has been maintained, continued to this recently declared dividend for march ending 2022. It has declared only one special dividend so far.

Stock Performance & other details

It is an IT Service sector Large-cap with a market capitalization of Rs 48,147.94 Crore. The 52-week low of the stock is Rs 2,457.55 per share and 52 weeks high is Rs 5,060 per share. The current market price of the stock is Rs 2,957.50 per share at the time of writing, it was opened at Rs 2,890.60 per share.

The share price of the stock in the last one week has moved up nearly 6.31%, and 2.25% in the last 1 month. Its Return on investment is good over the last one month. However, in the last one months, its share slid more than 30%. whereas, in the last 1 year, it gained 14.81%. In a short investment period, the stock has given mixed returns, considering the tenure. However, during the long-term investment period, the stock has given multibagger returns. In 3 years, it gave 209.98% and a whopping 456.53% in 5 years.

What brokerage said?

Mindtree Ltd has given top-line performance driven by growth across verticals. Its revenue grew by 37.4% YoY to Rs. 2,897cr in Q4FY22, supported by broad-based momentum across segments. Among the verticals, CMT business grew 5.2% sequentially (+25.9% YoY), driven by product engineering and customization, digital marketing etc.

Geojit Financial Services, its report published on 24th June 2022, has given a Rs 3,114 target price and maintains a hold rating. The brokerage said, "We expect broad-based growth to continue across the industries and geographies backed by a robust order book. The proposed merger will provide significant scale benefits, resulting in competitive advantage and improvement in large deal capabilities. However, the resignation of LTI's CEO raises concerns over the retainment of key managerial personnel, which is crucial to the merging entity's performance. We reiterate our HOLD rating with a target price of Rs. 3,114 based on 23.5x FY24E EPS. "

Proposed Merger

Management has commented that - "Mindtree will merge into L&T Infotech to form the merged entity 'LTIMindtree', which will be an efficient and scaled up IT services provider exceeding $3.5 Bn. Shareholders of Mindtree will get 73 shares of LTI for every 100 shares held. Larsen & Toubro Ltd. will hold 68.73% of LTI after the merger.

 

About - Mindtree ltd

Mindtree Ltd is an international Information Technology consulting and implementation company that delivers business solutions through global software development. Mindtree delivers digital transformation and technology services from ideation to execution, enabling Global 2000 clients to outperform the competition. "Born digital," Mindtree takes an agile, collaborative approach to create customized solutions across the digital value chain. The company's deep expertise in infrastructure and applications management turns IT into a strategic asset. Mindtree Ltd is an LTI company, a Larsen & Toubro group company

 

Disclaimer

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