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This Tata Group Stock Will Go Ex-Dividend For A Solid Rs 51 Per Share, Dividend Yield 4.99%
There are several reasons for investors to invest in the stock of Tata Steel Ltd. The company is bringing down debt considerable, has generated free cash flow to the tune of Rs 27,185 crores and reduced it net debt.
There are several reasons for investors to invest in the stock of Tata Steel Ltd. The company is bringing down debt considerable, has generated free cash flow to the tune of Rs 27,185 crores and reduced it net debt as well. The company is expected to have great cash generation on the back of rising steel prices. It implies that its debt reduction programme is likely to continue.
It is worth mentioning that the company has repaid debt to the tune of Rs 15,232 crore in the previous 12 months and now its net debt to EBIDTA is at 0.8 times, which is quite practical. The stock announced its final dividend and its ex-dividend date is coming up this week. Let us find in more detail below:
1. Tata Steel declared final dividend of 510%
In its filing dated May 4, 2022 the board of directors of Tata Steel said, "Recommended a dividend of Rs. 51 per fully paid-up Ordinary Share of ₹10/- each (510%) to the shareholders of the Company for the Financial Year ended March 31, 2022. Further, in respect of the outstanding partly paid-up Ordinary Shares of the Company on which call money remains unpaid as on the date of book closure for the dividend payment, the dividend will be paid in proportion to the amount paid-up on such shares, i.e., ₹12.75 per partly paid-up Ordinary Share of ₹10/- each (paid-up ₹2.504 per share) (510%)."
Ex-Dividend Date: It is important to note that the ex-dividend date is June 15, 2022.
2. Dividend History of Tata Steel
Tata Steel has a great dividend track report and it has regularly declared dividend for the last 5 years, without fail. The dividend yield is 4.99% if we look at the current share price of Rs 1023.70 apiece.
3. Stock outlook of Tata Steel
The current market price of Tata Steel Ltd was recorded at Rs 1023.70. It has touched its 52-week high of Rs 1534.50 and 52-week low of Rs 596 apiece. The stock has given a negative return of 8.14% in one year and a positive return of 101.36% in five years.
The P/E is 3.11 which is lesser than sector P/E of 4.97, yet another positive. The EPS is 328.68.
4. About Tata Steel Ltd
Tata Steel has emerged as one of the largest steel producers in Europe with a crude steel production capacity of over 12.4 MnTPA. It established its presence in the European continent after acquiring Corus in 2007. Meanwhile, Tata Steel's operations in South-East Asia, with 2.2 MnTPA capacity, began in 2004 with the acquisition of NatSteel, Singapore.
The market capitalization as of writing this report is Rs 125,063 crore. Earlier, Tata Steel declared a jump of 47% YoY in its net profit at Rs 9756.20 crore for Q4 ending March 31, 2022. Revenue from the operations jumped 38.6% YoY to Rs 69,323.5 crore for Q4 ending March 31 as against Rs 50,028.37 crore in Q4 FY21.
