Rs 18/Share Dividend: 4 Key Triggers For Infosys Stock, To Turns Ex-Dividend On October 25

The second largest IT company in India in terms of market share, Infosys will be focus on stock exchanges during Wednesday's trading session. The tech giant's share price will trade ex-dividend for a 360% dividend payout. The company plans to distribute this dividend in shareholders' demat accounts by the first few days of November.

As per regulatory filing, Infosys has declared an interim dividend of Rs 18 per share for the current financial year 2023-24. In percentage terms, the dividend payout is 360%. This would be the first interim dividend of the fiscal.

The IT player fixed October 25 as the record date to determine eligible shareholders for the dividend payout. Also, this will be the ex-dividend date for Infosys shares.

The ex-dividend date is the day when the price of the equity share of the listed company gets adjusted for the dividend payout. As per BSE FAQs, to be eligible to receive dividends, investors have to have shares in the Demat account by record date.

Last fiscal (FY23), Infosys paid a dividend of 680% amounting to Rs 34 per share to investors. On the current price level, Infosy's dividend yield is at 2.41%. As per Trendlyne data, Infosys has declared over 49 dividends in two decades.

Ahead of the ex-dividend date, Infosys share price stood at Rs 1,408.95 apiece, down by 1.3% on BSE. The company's market cap is nearly Rs 5.85 lakh crore.

After Q2FY24 earnings, ICICI Securities has recommended buying Infosys shares for a target price of Rs | 1,600 i.e., 22x P/E on FY25E EPS.

According to the brokerage, there are four key triggers for Infosys shares. These are:

1. Differentiated digital and cloud capabilities to drive growth

2. Growth remained broad-based and deal momentum robust, with digital transformation rapidly getting scaled up across verticals and regions

3. Infosys to post rupee revenue growth of 10.3% CAGR in FY23-25E

4. Double-digit return ratios, strong cash generation and a healthy payout

During Q2FY24, Infosys posted a consolidated net profit of Rs 6,212 crore which is attributable to the owners of the company, registering a growth of 4.5% QoQ and 3.2% YoY. Consolidated revenue stood at Rs 38,994 crore in the quarter under review, posting a growth of 2.8% from Rs 37,933 crore in Q1FY24 and also climbed 6.7% from revenue of Rs 36,538 crore in Q1FY24. In the quarter, in constant currency, Infosys delivered $4,718 million in Q2 revenues with year-on-year growth of 2.5% and sequential growth of 2.3% in constant currency

For the full-year FY24, Infosys trimmed its upper-end of constant currency revenue growth to 3.5% from the previous 2.5%. Overall, the company expects CC revenue growth to be in the range of 1-2.5% from earlier 1-3.5%. However, it maintained its EBIT margin guidance in the range of 20-22% growth.

Disclaimer:

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