2 Tata Group Dividend Stocks To Buy/Sell After Q4 Results, Dividend Announcement

Two Tata Group leading companies reported their quarterly earnings and announced attractive dividends as well. These two companies are Tata Communications and Tata Consultancy Services Ltd. TCS declared a surge of 9.1% in its net profit YoY to Rs 12,434 crore while Tata Communications reported a decline of 1.5% in its consolidated net profit to Rs 321.2 crore.

However, revenue from operations of Tata Communications surged to 24.6%. TCS recommended a final dividend of Rs 28 per share and Tata Communications recommended a final dividend of Rs 16.70 per share for the financial year ended March 31, 2024. After quarterly results and dividend announcement, Prabhudas Lilladher has highlighted their strategy for both the stocks. More details below:

1. Buy Tata Consultancy Services Ltd Share: Last trading price of Tata Consultancy Services share on BSE is Rs 3827.45 per share with intraday fall of 0.93%. The 52-week high price of Tata Consultancy Services share on BSE is Rs 4254.45 apiece (as on 18/03/2024) and 52-week low price is Rs 3079.00 per share (as on 20/04/2023), respectively. The large cap IT Software giant of Tata Group has a market capitalisation of Rs 13,84,804.91 crore. The stock has a PE of 33.35 and EPS (TTM) of 29.45. Tata Consultancy Services shares declined 4.32% in last 1-week, gained 23.92% in last 1-year, and surged nearly 78% in last 5-years.

TCS recommended a final dividend of Rs 28 per equity share of Re 1 each of the company.

Earlier, TCS declared a net profit of Rs 12,434 crore, up 9.1% year-on-year (Y-o-Y). Sequentially, the IT Software company's profit after tax soared 6% from Rs 11,735 crore. Its revenue for the quarter surged 3.5% YoY to Rs 61,237 crore. Sequentially, it surged 1%. The company inked one of its highest total contract values (TCV) worth $13.2 billion for the Q4 of FY24. For FY24, TCS declared its order book at $42.7 billion, highest so far.

As per market experts, Tata Consultancy Services results for Q4FY24 managed to beat market estimates as the firm registered a strong surge in the domestic business. It recorded a business growth in UK as well. Experts stated that TCS successfully declared a record deal closure to the tune of more than $13 billion in the just ended quarter.

According to Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, "TCS share price has picked up well in the last 5 months with currently hovering near the significant 50EMA level of ₹3,975 zone and has near-term support at around the 100 period MA level of Rs 3,875. The crucial support would be maintained near the 200 period MA of ₹3,650 level below which the trend shall turn weak. At the same time, on the upside, a decisive breach above the resistance zone of Rs 4,250 level is necessary to indicate a breakout and thereafter, establish a conviction for further rise having targets of Rs 4,530 and Rs 4,720 levels for the medium-term time frame."

2. Sell Tata Communications Share: Last trading price of Tata Communications Ltd share on BSE is Rs 1754.95 per share with sharp intraday fall of over 5% as on April 19, 2024. The 52-week high price of Tata Communications share on BSE is Rs 2085.00 per share (as on 03/04/2024) and 52-week low price is Rs 1175.00 per share (as on 20/04/2023), respectively. The telecom sector stock has a market capitalisation of Rs 50,016 crore. Tata Communications recommended a final dividend of Rs 16.70 per share for the financial year ended March 31, 2024.

Tata Communications shares declined over 9% in last 1-week, fell 15% in last 2-weeks, dived 1.16% in last 6-months, and offered return of 47% in last 1-year. In last 5-years, Tata Communications stock zoomed 379%.

Tata Communications Limited on April 17 declared a decline of 1.5% in its consolidated net profit to Rs 321.2 crore for the quarter ended March 31, 2024. It announced a net profit of Rs 326 crore in the corresponding quarter of last year. Meanwhile, revenue from operations surged 24.6% to Rs 5,691.7 crore as compared to Rs 4,568.7 crore in the similar quarter of last year. Its EBITDA announced at Rs 1056.3 crore, up 2.1% and EBIT margin fell to 18.6% from 22.6%.

Prabhudas Lilladher suggested selling Tata Communications share with a stop loss at Rs 1,920 and targeting price in the range of Rs 1,880 - Rs 1,850 apiece.

Disclaimer: The stocks have been picked from the brokerage reports of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage Houses are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.