10:1 Split, 1:2 Bonus: Tata's Steel Stock Falls On Turning Ex-Dividend For 360% Payout Ahead: BUY-On-Dips?

Tata Group-backed steel giant, Tata Steel's share price fell sharply on June 21 as it turned ex-dividend for 360% final dividend payout for FY24. Tata Steel stock has been hovering between Rs 180-185 levels in the past few days. The stock is among the top performers in the metal sector. Investors cashed in their gains on Friday, bringing a buy-on-dips opportunity.

At the time of writing, Tata Steel shares traded at Rs 179.05 apiece, down by 1.81% on BSE with a market cap of Rs 2,23,578.46 crore. The stock is near its day's low of Rs 179 apiece.

The stock's 52-week high and low is at Rs 184.60 apiece and Rs 108.15 apiece respectively. YTD, Tata Steel outperformed its counterparts with gains of over 28%. In a year, the stock is up by 57%.

Tata Steel had fixed June 21, 2024, as the record date for the final dividend of Rs 3.60 per share for FY24, the same as the payout in FY23.

The record date for dividends is set to identify eligible shareholders for the benefit. Investors buying Tata Steel shares after June 21 will not be eligible. But investors who have stayed with Tata Steel till June 21 end, will be eligible. The dividend payment date is fixed on and from July 19, 2024.

Since its bonus issue, Tata Steel has delivered a huge Rs 299 per share dividend. However, its highest dividend payout was Rs 51 per share in 2022, and cumulatively it paid Rs 63.75 per share in that year.

Meanwhile, Tata Steel has issued 1 free bonus share on the existing 1 equity share, taking the ratio to 1:1. Additionally, Tata Steel stock has also turned ex-split in 2022 in the ratio of 10:1.

Buy Tata Steel Stock?

Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher told GoodReturns.In that "The stock has maintained the strong uptrend with series of higher lows and higher top formation witnessed on the daily chart and maintaining above the significant 50EMA zone since the last 7-8 months."

Koothupalakkal added, "Recently, there has been some consolidation happening, resisting near the 184 zone and with near-term support maintained near 178 levels, we can expect further rise once the 184 level is breached decisively with targets of 194 and 205 levels visible."

Last week, Tata Steel confirmed that the Dutch Parliament, in March 2024 formally gave a mandate to the Government to negotiate the terms of potential support towards a proposal for decarbonization in Tata Steel Nederland. Subsequently, the Dutch Government has formulated a detailed framework of diligence, analysis, discussions and negotiations with Tata Steel which will run over several months before potentially culminating in an agreed set of terms. Also, the company added that these terms will then require approval from the Netherlands Parliament as well as the Board of Tata Steel.

Additionally, Tata Steel also clarified UK media reports that claimed policy differences between the UK government and the opposition on its transformation plan. Over the last three years, Tata Steel, part of India's Tata Group, one of the UK's largest private sector investors and the UK Government have worked hard to develop a sustainable future for Tata Steel UK and the Port Talbot Plant, it added.

Tata Steel, with an annual crude steel capacity of 35 million tonnes per annum (MnTPA), is one of the world's most geographically diversified steel producers. This Tata Group-backed company is one of the few steel operations that are fully integrated - from mining to the manufacturing and marketing of finished products.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, 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.