Rs 15/Share Dividend: Small Cap Stock Announces Record Date; Buy?

With a market valuation of Rs 380.29 Cr, Majestic Auto is a small-cap company in the commercial services industry. The main lines of business for Majestic Auto Limited, an Indian firm, are facility management and rental services. Majestic Auto's stock hit a new 52-week high on Friday at Rs 372 and ended the day up 7.46% at Rs 365.75 apiece on the BSE following the release of the company's Q3 earnings and interim dividend for FY24.

Majestic Auto Dividend

The Board of Directors has declared an "Interim dividend of Rs. 15/- per share for the financial year 2023-24 after considering distributable profits and the opportunities available for strengthening and growth of its business. Accordingly, the board has fixed February 20, 2024, as the record date for determining the entitlement of members for the purpose of payment of interim dividend. The payment of interim dividend/ dispatch of dividend warrants will be completed by March 08, 2024," said Majestic Auto in a regulatory filing.

Majestic Auto Financials

The company's net sales on a stand-alone basis increased 16.59% from Rs. 5.07 crore in the December 2022 quarter to Rs. 5.91 crore in the December 2023 quarter. Its net profit climbed 5142.58% from Rs. 0.10 crore in Q3FY23 to Rs. 5.44 crore in Q3FY24. According to a regulatory filing, the company's EBITDA soared by 472% to Rs. 8.58 crore in Q3FY24 from Rs. 1.50 crore in Q3FY23.

Majestic Auto Share Price Target

Deven Mehta - Equity Research Analyst at Choice Broking said MAJESAUT, currently trading at Rs 368, is nearing its all-time high of Rs 375, offering investors a strategic moment for evaluation and planning. With support levels at Rs 340 and Rs 315, the stock demonstrates stability, suggesting that buying on dips could be advantageous, particularly if a correction occurs from the all-time high.

The stock's consistent pattern of higher highs and higher lows on the daily chart, coupled with robust trading volume, reflects a strong bullish trend and reinforces investor confidence. A potential breach of the Rs 375 level could lead to new highs at Rs 390 and Rs 415 in the short term.

However, the Relative Strength Index (RSI) signals a potential correction as it currently resides in the overbought zone, presenting entry opportunities for investors. Furthermore, trading above major support levels of its exponential moving averages indicates robust technical strength. Investors are advised to maintain long positions with a trailing stop-loss set at Rs 315 to manage downside risks effectively.

Considering potential retracements, buying on dips could further optimize investment strategies. In conclusion, MAJESAUT's proximity to its all-time high, coupled with its strong bullish trend and technical resilience, offers an enticing opportunity for investors. Strategic vigilance and prudent decision-making can position investors to capitalize on MAJESAUT's potential upward trajectory.

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.