Rs 37/Share Dividend: Blue Chip Stock To Trade Ex-Dividend On Monday For 3700% Payout

On Friday's closing session, Eicher Motors, a blue-chip firm, had a market worth of Rs 92,738.10 Cr. Eicher Motors Limited, which was established in 1982, is the primary subsidiary of the Eicher Group in India and a major force in the country's automobile market. The company declared a final dividend of 3700% for FY23 and the record date is falling on Monday, 14th August. Due to the company's T+1 settlement mechanism, the stock is going to trade on the same date which market watchers should be aware of.

Eicher Motors Dividend

Eicher Motors has declared a final dividend of 3700% or Rs 37 per share at a face value of Rs 1 for FY23. "Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements), 2015, the Register of Member and Share Transfer Books of the Company will remain closed from August 17, 2023 to August 23, 2023 (both days inclusive) for the purpose of 41st Annual General Meeting of the Company and determining the eligibility of the shareholders for payment of Dividend for the financial year 2022-23, subject to approval of Dividend by the Members at the aforesaid Annual General Meeting," said Eicher Motors in a stock exchange filing.

Eicher Motors Financials

The total revenue from operations for Eicher Motors in the first quarter of FY 24 was Rs 3,986 crores, up 17.3% from Rs 3,397 crores in the same period of FY 2022-23. EBITDA jumped by 22.8% to Rs 1,021 crores during the quarter under review from Rs 831 crores reported in the year-ago quarter. Profit After Tax was Rs 918 crores in Q1FY24, up 50.4% as compared to a profit of Rs 611 crores during Q1FY23. In comparison to the 186,032 (consolidated) motorcycles sold during the same time in FY 2022-23, Royal Enfield sold 225,368 (consolidated) motorcycles in the quarter, which is a rise of 21.1%.

"This is the best ever Q1 performance for the company, and is also the fourth consecutive quarter of highest ever Revenue from operations and PAT," said Eicher Motors in a statement.

Eicher Motors Share Price Target

On Friday, the shares of Eicher Motors closed on the BSE at Rs 3387.70 apiece down by 0.83% from the previous close of Rs 3416.20. The stock made a 52-week-high of Rs 3,886.00 on (01/11/2022) and a 52-week-low of Rs 2,835.95 on (28/03/2023).

Ameya Ranadive, Sr Equity and Derivatives Analyst · Choice International Ltd said, "Eicher Motors Limited (EICHERMOT), currently trading at 3389, exhibits a promising market outlook within the context of an upward-moving channel. The stock's trajectory has been characterized by its adept utilization of support and resistance levels, further bolstered by its consistent adherence to key moving averages. Notably, EICHERMOT has demonstrated resilience by maintaining its position above the 20-day, 50-day, and 100-day Exponential Moving Averages (EMAs). Particularly encouraging is its trading comfortably above the critical 200-day EMA, reflecting a strong bullish sentiment."

"The Relative Strength Index (RSI) stands at 51, underscoring the stock's positive momentum and upward trend. The gradual ascent of the RSI further solidifies the notion of an ongoing upward movement. At this juncture, EICHERMOT finds itself within a favorable accumulation phase, hinting at potential gains in the near term. A projected range of 3525 to 3600 emerges as a plausible target for the stock's upward trajectory," said Ameya Ranadive.

"However, a note of caution is warranted, as a breach below the 3300 mark could incite significant selling pressure. Investors are advised to monitor this level closely, as it could potentially alter the stock's current momentum. In conclusion, Eicher Motors exhibits a poised stance within the market, with its technical indicators and price action suggesting a positive trajectory. Nonetheless, vigilance remains imperative in the face of potential downside risks, particularly below the 3300 threshold," Ameya Ranadive further stated.

Disclaimer

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