Rs 98.50/Share Dividend: Mid Cap Stock To Turn Ex-Dividend On Monday For 985% Dividend Payout

Mid-cap firm Lakshmi Machine Works operates in the capital goods industry. Lakshmi Machine Works Limited (LMW), a top manufacturer of textile machinery in India, has expanded into CNC machine tools. The company has declared 985% dividend for FY23 and as per the data available on the BSE 24 July 2023 has been fixed as the ex-dividend date. Due to the T+1 settlement mechanism of the company the record date is also falling on the same date.

Lakshmi Machine Works Dividend

The Board of Directors has "Recommended dividend of Rs. 98.50 per equity share having face value of Rs.10/- each for the financial year ended 31st March 2023, subject to the approval of the shareholders. To close the Register of Members and Share Transfer Books of the Company from Tuesday, 25th July 2023 to Monday 31st July 2023 both days inclusive, for the purpose of determining the eligibility of the equity shareholders for the dividend, if approved by the shareholders," said Lakshmi Machine Works in a stock exchange filing.

"The remote e-voting period begins on Thursday, 27th July 2023 at 09.00 A.M. India Standard Time ("IST") and ends on Sunday, 30th July 2023 at 05.00 P.M. IST. The remote e-voting module shall be disabled by NSDL for voting thereafter. The Members, whose names appear in the Register of Members / Beneficial Owners as on the record date ("Cut-off date") i.e., Monday, 24th July 2023, may cast their vote electronically. The voting right of Shareholders shall be in proportion to their share in the paid-up equity share capital of the Company as on the cut-off date, being Monday, 24th July 2023," said Lakshmi Machine Works in a stock exchange filing.

Lakshmi Machine Works has announced an equity dividend of 985.00% at a face value of Rs 10 totaling Rs 98.5 per share for the financial year ended March 2023. This generates a dividend yield at the current share price of Rs 13640 of 0.72%. The business has a solid track record of dividend declarations during the past five years. Lakshmi Machine Works Ltd. has issued 26 dividends since June 18, 2001, according to data from Trendlyne.

Lakshmi Machine Works Financials

During Q4FY23, the company recorded a net income of Rs 1350.90 Cr, up by 33.30% YoY from Rs 1013.40 Cr in Q4FY22. Its net profit stood at Rs 94.09 Cr in March 2023 quarter, up by 13.74% YoY from Rs 82.72 Cr in March 2022 quarter. In the year ended FY2023 its net income was Rs 4866.96 Cr up by 50.25% in the year ended FY2022 while its net profit was Rs 384.01 Cr in 12MFY23 up by 112.11% YoY from Rs 181.04 Cr recorded in 12MFY22.

The company reported EPS of Rs. 88.08 for the quarter that ended on March 31, 2023, up from Rs. 77.44 for the quarter that ended on March 31, 2022. The company declared EPS of Rs. 359.47 for the financial year that ended on March 31, 2023, up from Rs. 169.47 for the financial year that ended on March 31, 2022.

Lakshmi Machine Works is yet to declare its Q1FY24 results.

Lakshmi Machine Works Share Price Target

Ameya Ranadive, Equity Research Analyst at Choice Broking said "Laxmi Machine Works, currently quoting at 13654, has witnessed a commendable rally over the past three months, with a remarkable price appreciation of over 44%. However, there has been some profit booking observed around the 14000-14400 levels. The analysis of daily and weekly charts reveals the formation of RSI divergence, indicating that the recent price surge might lack significant strength. Notably, the stock has found robust support at 13400 levels, which holds critical importance as a support zone. Previous instances have shown that once this level was breached back in December 2022, the stock experienced a substantial decline. As such, it would be prudent to exercise caution if the 13400-support level is breached."

"Currently, Laxmi Machine Works is finding support from the 21-day Exponential Moving Average (EMA) along its upward trajectory. Furthermore, it is trading above all short, mid, and long-term averages, showcasing its strong market position. Taking into account these factors, our outlook remains cautiously optimistic on Laxmi Machine Works. We believe short-term targets could potentially be set at 14600-14820 levels. However, it is essential to bear in mind that our views would be invalidated if the stock falls below the 13000 mark," said Ameya Ranadive.

Nirav Karkera, Head of Research, Fisdom said, "The company's revenues have been scaling across segments while it maintains a healthy order book. Exports turnover has been growing at a healthy pace and is expected to tide over intermittent slump on account of unfortunate calamity-induced disruptions in Turkey - a key export destination for the company. The company has indicated that operations are hitting peak capacity even as they remain committed to expediting deliveries. If the company is able to execute in line with the intent, it would augur well for the overall business as well as financial profile.

The company has only recently activated its middle east operations and expect to grow it grow at a meaningful pace. Lakshmi Machine Works recently featured across discussions on account of its claimed contribution, through the advanced technology centre, to the landmark Chandrayaan-III mission through roles in assembly and testing exercises. The advanced technology centre's turnover has grown strongly while the order book appears healthy and is expected to be executed over a three-year period. However, most positive developments seem to be aggressively priced in. In the near term, one could expect some profit-taking from the counter."

"LAXMIMACH has witnessed a strong rally from the low of 9,982 to the high of 14,441 levels and has delivered a return of more than 40% within a span of just 4 months. Presently, the stock has completed its V-shape reversal rally and has formed a double top formation on the weekly time frame.

On the weekly chart, prices have formed a shooting star candle stick pattern which suggests an immediate top in the counter. While observing the momentum oscillator RSI (14) in the lower panel of the above chart, it appears to suggest that the oscillator has formed a negative divergence near the overbought zone and an instant profit booking at current levels cannot be ruled out. One should wait for the prices to dip toward 13,000 and 12,650 levels for fresh entry with a stop of 12,150 levels and similarly, if prices cross above 14, 000 - 14,500 levels, then we can expect the stock to attempt levels towards 15,250 - 15,750 range," said Nirav Karkera.

Disclaimer

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