Vedant Fashions Target: Debt-Free Stock To Pay Rs 8.50 Dividend By August 31; A Deal To Buy?

Established in 2002 in Kolkata, Vedant Fashions is a speciality retail company in the consumer discretionary sector. Wedding and celebration wear are produced and sold by Vedant Fashions Limited both domestically in India as well as internationally. One of the debt-free companies, Vedant Fashions, is going to pay a Rs. 8.50 dividend by August 31st. Is this the right moment to purchase shares in order to be eligible for dividend payments? Here, let's investigate.

Vedant Fashions Dividend

A dividend of 850% i.e. Rs. 8.50/- per equity share of face value of Re. 1 each for the financial year 2023-24 has been recommended by the Board of Directors to the members for their approval.

"The record date for the purpose of payment of Dividend would be Friday, August 23, 2024. The Dividend, as recommended by the Board, if approved at the AGM, will be paid on or after Saturday, August 31, 2024 to shareholders whose names are registered in the Company's Register of Members as Beneficial Owners as per the lists to be furnished by NSDL and CDSL in respect of the shares held in electronic form, and whose names appear as Members in the Register of Members of the Company in physical form which are maintained with the Registrar & Share Transfer Agent (RTA), as at the end of business hours on Friday, August 23, 2024," said Vedant Fashions in a stock exchange filing.

Vedant Fashions Q1 Results

In Q1 FY25, the firm recorded a consolidated net profit of Rs 62.48 crore, a 32.04% drop from the Rs 91.94 crore reported in Q1 FY24. The quarter ending June 2024 saw revenue from operations of Rs 239.82 crore, a 23.04% drop from the same period the previous year. In Q1 FY25, profit before tax fell 32.09% to Rs 83.06 crore, compared to Rs 123.80 crore in the same quarter the previous year. In Q1 FY25, overall expenses decreased 12.11% year on year to Rs 178.22 crore. In Q1 FY25, EBITDA plunged 22.9% to Rs 114.7 crore from Rs 148.7 crore in Q1 FY24. In Q1 FY25, EBITDA margin stood at 47.8%.

Vedant Fashions Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "The current trading price of MANYAVAR is Rs 1,148. The stock has recently formed a cup and handle pattern and is consolidating within a range on the daily chart, accompanied by a significant increase in trading volume. This suggests a potential bullish reversal. If the price manages to close above the Rs 1,195 level, it could have the potential to reach short-term targets of Rs 1,380 and Rs 1,490. On the downside, immediate support levels are located at Rs 1,100, which can be considered as opportunities to buy on dips."

"The Relative Strength Index (RSI) is currently at 63.10 and is trending upward, indicating increasing buying momentum. To prudently manage risk, it is advisable to set a stop-loss (SL) at Rs 1,050. This will help protect your investment in case of an unexpected market reversal. In summary, based on technical analysis and current market conditions, MANYAVAR appears to present an appealing buying opportunity for those targeting a price of Rs 1,380 and Rs 1,490, provided that appropriate risk management measures are in place," Mandar Bhojane further added.

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.