Rs 32/Share Dividend: IT Stock To Turn Ex-Dividend On Tuesday, 30th Jan; Buy?

Large-cap IT company Persistent Systems Ltd. is expected to draw attention from market watchers tomorrow since its shares are scheduled to trade ex-dividend. As per the data available on BSE, the Board of the company has fixed 30th January 2024 as the record date for the purpose of dividend and due to the T+1 settlement mechanism the stock is going to trade ex-dividend tomorrow on Tuesday, 30th Jan for 320% payout at a face value of Rs 10 each.

Persistent Systems Dividend

"The Board of Directors declared an Interim Dividend of Rs 32 per share on the face value of Rs 10 each for the Financial Year 2023-2024. In addition, the Board has recommended to the shareholders a resolution to split the face value of shares from Rs 10 per share to Rs 5 per share," said Persistent Systems in a regulatory filing.

"We wish to inform you that the Board of Directors at its meeting held on January 20, 2024, has approved payment of an Interim Dividend of INR 32 (INR Thirty-Two only) per Equity Share of INR 10 each for the Financial Year 2023-24," the Board of Directors of the company said in a stock exchange filing.

Tuesday, January 30, 2024 has been fixed as the record date for the above-said dividend and the interim dividend approved by the Board of Directors at its meeting held on Saturday, January 20, 2024, will be paid to the members within a period of 30 days of its declaration by February 18, 2024, according to Persistent Systems.

Persistent Systems Financials

For the quarter that ended on December 31, Persistent Systems recorded a 20.2 percent rise in net profit to Rs 286.1 crore year on year. The third quarter's consolidated revenue was Rs 2,498.2 crore, up 15.2 percent over the same period the year before. From 13.7 per cent in the prior quarter to 17.7 percent during the quarter under review, the EBIDTA margin grew. Orders were booked at $521.4 million in terms of Total Contract Value (TCV) and $392.1 million in terms of Annual Contract Value (ACV) for the quarter that ended on December 31, 2023.

Persistent Systems Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said presently trading at Rs 5470, PERSISTENT has consolidated within the range of Rs 8600-Rs 8200. Over the past week, the stock has demonstrated robust support at the Rs 8000 level, signaling price stability.

This stability is reinforced by a consistent pattern of higher highs and higher lows on the daily chart, accompanied by strong trading volume, indicating a strong upward trajectory.

Furthermore, PERSISTENT is currently trading above critical Exponential Moving Averages (EMAs) - including the 20-day, 50-day, 100-day, and 200-day EMAs - emphasizing its bullish momentum and suggesting the potential for further upward price movement.

The Relative Strength Index (RSI) stands at 80 and exhibits an upward trajectory, indicating increasing buying momentum. Considering these technical factors, there is a possibility that PERSISTENT could achieve a target price of Rs 9500 in the near term.

Buying on dips near the Rs 8200-Rs 8100 level is identified as a good buying opportunity. PERSISTENT appears to present a promising buying opportunity for those aiming for a Rs 9500 price level, with prudent risk management measures in place.

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.