Rs 30/Share Dividend: Debt-Free Stock Turns Ex-Dividend Today; Buy?

Wendt India is a small-cap firm that offers a diverse and remarkable product portfolio, a strong innovation strategy, individualised technical services, and grinding technology solutions to over 750 customers in the Indian market. The debt-free firm Wendt India announced an interim dividend of Rs. 30 per share for FY24, with February 1st set as the record date for the same which means that the stock is going to trade ex-dividend today on Thursday resulting in gaining focus of the market watchers.

Wendt India Dividend

The Board of Directors has declared an interim dividend of 300% i.e. Rs. 30/- per equity share (on a face value of Rs. 10/-) for the year ending 31st March 2024. "The Record Date for determining the members eligible to receive aforesaid interim dividend is 1st February 2024. In the case of shareholders opting for NECS/ECS, the dividend would in the normal course be credited to their accounts by Friday, 16th February 2024. In the case of shareholders opting physical mode of payment, the same will be dispatched by Friday, 16th February 2024," said Wendt India in a regulatory filing.

Wendt India Financials

In terms of stand-alone revenues, the company made Rs. 4950 lakhs in the quarter that ended on December 31, 23. This represents a 6% increase over the same period the previous year (YoY). The quarter ending December 31, 23 saw domestic sales of Rs. 3845 lakhs, an 11% increase over the same period the previous year. As a result, the current quarter's Profit After Tax (PAT) is Rs. 915 lakhs, 20% less than the comparable quarter in the prior year (YoY).

For the nine months that concluded on December 31, 2023, the company's total sales came to Rs. 14134 lakhs, which is 3% more than during the same time the previous year. PAT came to Rs. 2641 lakhs, which is 5% less than during the same period last year. The quarter ending December 31, 23 saw domestic sales of Rs. 3845 lakhs, an 11% increase over Q3FY23.

Wendt India Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said in the current market scenario, WENDT is positioned at Rs 13000, experiencing a minor pullback alongside sideways consolidation. Noteworthy is the stock's establishment of a support level at the 200-day Exponential Moving Average (EMA), signalling a promising potential for further upward movement, with a targeted peak at Rs 14500. Emphasizing this positive trajectory is the substantial support zone discerned near Rs 12000 on the downside.

A key observation is WENDT current trading position above critical Exponential Moving Averages, including the 200-day EMAs. This underlines a robust bullish momentum, solidifying the expectation of sustained upward price action.
In terms of risk management, market participants are advised to set a stop-loss at Rs 12000, offering a protective shield for their investment. A strategic approach involves actively exploring buying opportunities during market dips, enhancing the potential for optimal entry points.

Upon scrutinizing the technical indicators and evaluating prevailing market conditions, WENDT emerges as a promising buying prospect. With a target price set at Rs 14500, contingent upon the implementation of prudent risk management measures, this stock presents an attractive proposition for investors seeking potential gains in the current market environment. The observed support levels, combined with the bullish momentum, contribute to a positive and promising outlook for WENDT in the dynamic landscape of technical analysis.

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.