300% Payout: Small Cap Stock Okays Rs 30/Share Interim Dividend For FY24; Buy?

As of the special session on Saturday, Wendt (India) has a market capitalization of Rs 2,744.18 Cr, putting it as a small-cap company in the capital goods category. Wendt India is renowned for its robust product development, broad and outstanding product portfolio, individualised technical assistance, and provision of technology solutions in grinding to its more than 750 direct domestic clients. This week will see a lot of attention focused on the company because the Board of Directors announced a sizable interim dividend of Rs 30 per share for FY24.

Wendt (India) Dividend

"The Board at its meeting convened today has declared an interim dividend of 300% i.e. Rs. 30/- (Rupees thirty only) per equity share (on a face value of Rs. 10/-) for the year ending 31st March 2024. The Record Date for determining the members eligible to receive aforesaid interim dividend is 1st February 2024. In the case of shareholders opting for NECS/ECS, the dividend would in the normal course be credited to their accounts by Friday, 16th February 2024. In the case of shareholders opting physical mode of payment, the same will be dispatched by Friday, 16th February 2024," said Wendt (India) in a stock exchange filing.

Wendt (India) Q3 Results

In terms of stand-alone revenues, the company made Rs. 4950 lakhs in the quarter that ended on December 31, 23. This represents a 6% YoY growth over the same period of the previous fiscal year. The quarter ending December 31, 23 saw domestic sales of Rs. 3845 lakhs, a rise of 11 per cent over Q3FY23. For the quarter that ended on December 31, 23, exports were Rs. 1105 lakhs, 10% less than the year-ago quarter. This is on account of lower offtake from some customers due to the global recession and slowdown in USA, Indonesia and Europe, said Wendt (India) in an exchange filing.

Compared to the same quarter last year, the current quarter's Profit After Tax (PAT) was Rs. 915 lakhs, a 20% reduction. Sequentially (QoQ), compared to the current year's quarter that ended on September 30, 23, the standalone sales for the quarter that ended on December 31, 23 jumped by 8%, while PAT climbed by 7%. For the nine months that ended on December 31, 2023, the company's total sales came to Rs. 14134 lakhs, 3% more than during the same period the previous year. PAT came to Rs. 2641 lakhs, 5% less than during the same period the previous year.

On a consolidated basis, the company's sales for the quarter under review were Rs. 5413 lakhs, 6% more than the corresponding quarter of the previous year, while its profit after tax (PAT) was Rs. 960 lakhs, 5% less than Q3FY23. Sequentially (QoQ), compared to the current year's quarter that ended on September 30, 23, the consolidated sales for the quarter that ended on December 31, 23 jumped by 7%, while PAT climbed by the same percentage.

Wendt (India) Share Price Target

Wendt India stock price is bearish on the Daily charts with strong resistance at 15300. A daily close below support of 13340 could lead to 12270 in the near term, AR Ramachandran from Tips2trades said.

Disclaimer

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