Rs 130/Share Dividend: Mid-Cap Stock To Trade Ex-Dividend On Friday For 1300% Payout

A mid-cap credit rating company operating in the financial services industry is ICRA. ICRA is a public limited company with its shares listed on NSE and BSE. The company has declared a special dividend of 900% and final dividend of 400% for FY23.And for the purpose of the same, the company has fixed Friday, July 28, 2023 as the record date and due to the T+1 settlement mechanism of the company the ex-dividend date is also falling on the same date.

ICRA Dividend

"Pursuant to Regulation 30 and other applicable provisions of the Listing Regulations, please be informed that the Board of Directors has recommended a dividend of Rs 40 per equity share of the face value of Rs. 10 each. In addition, the Board of Directors has recommended a special dividend of Rs. 90 per equity share. The total dividend recommended for the financial year ended March 31, 2023, is Rs. 130 per equity share. The dividend as recommended by the Board of Directors, if declared at the ensuing Annual General Meeting, will be paid/dividend warrants will be dispatched on or before Friday,7th August 25, 2023.

Please be informed that the register of members and share transfer books of the Company shall remain closed from Saturday, July 29, 2023 to Wednesday, August 2, 2023 (both days inclusive) for the purpose of determining the eligibility of members for payment of dividend for the financial year ended March 31, 2023. Accordingly, if the members approve the payment of dividend at the forthcoming Annual General Meeting, the dividend shall be paid to all those members whose names appear in the register of members as on Friday, July 28, 2023 and to all those members whose names appear on that date as beneficial owners as per the details furnished by National Securities Depository Limited and Central Depository Services (India) Limited on the close of business hours as on that date," saidICRA in a stock exchange filing.

ICRA has announced an equity dividend of 1300.00% at a face value of Rs 10, or Rs 130 per share, for the financial year ended March 2023. This generates a dividend yield of 2.35% at the current share price of Rs. 5516.95. The company has a solid track record of dividend declarations during the past five years. ICRA Ltd. has issued 18 dividends since July 23, 2007, according to Trendlyne statistics.

ICRA Financials

ICRA reported a 15% spike in its consolidated net profit to Rs 38.4 crore for the quarter ended March 2023 compared to a net profit of Rs 33.4 crore for the corresponding quarter of FY22. In comparison to Q4FY22, when revenue from operations totalled 93.7 crores, it climbed 16.4% to 109 crores in Q4FY23. For the entire fiscal year that ended on March 31, 2023, the consolidated revenue from operations climbed from Rs 342.8 in 12MFY22 crore to Rs 403.2 crore, which is a 17.6% rise. For the fiscal year that ended on March 31, 2023, the profit after tax rose from Rs 113.5 crore in 12MFY22 to Rs 136. 7 crore, a rise of 20.4%.

ICRA is yet to declare its Q1FY24 results. "Pursuant to Regulation 29 and other applicable regulations of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), please be informed that a meeting of the Board of Directors of ICRA Limited (the "Company") is scheduled to be held on Thursday, August 3, 2023, inter alia, to consider and approve the unaudited financial results (standalone & consolidated) of the Company for the quarter ended June 30, 2023," said ICRA in a stock exchange filing.

ICRA Share Price

On Wednesday, the shares of ICRA opened on the BSE at Rs 5549 apiece and while writing this copy the scrip was trading at 5516.95 apiece with a downside gap of 0.42% over the previous close of Rs 5540.20. The stock made a 52-week-high of Rs 5,974.95 on (21/07/2023) and a 52-week-low of Rs 3,663.65 on (08/09/2022).

ICRA Share Price Target

Ameya Ranadive, Sr Equity and Derivatives Analyst · Choice International Ltd said ICRA is presently trading at 5531, hovering near its all-time highs, which is a positive indicator of its recent performance. Over the past few years, the stock has displayed a notable uptick, delivering substantial returns to investors. Notably, the stock has undergone a healthy consolidation phase, trading within the range of 5600 to 5350 over the last three weeks.

Investors should be aware that there is an upcoming dividend adjustment of 130 rs, which could result in a correction of approximately 2.35% in the stock's value. As of now, ICRA appears to be an attractive "buy on dips" opportunity, with the potential for favorable accumulation around the 5300-5400 levels.

It is worth noting that if the stock manages to break out above the 5600 mark, a rapid upward movement can be anticipated. However, investors should exercise caution, as weakness in the stock or profit booking may be expected if it falls below the critical support level at 5280.

Considering the recent performance and technical analysis, ICRA presents a compelling opportunity for investors to capitalize on its potential upside while keeping a close eye on key support levels.

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.