100% Dividend: Ex-Date In 2 Days On 12th April; Buy The IT Stock To Be Eligible?

Mold Tek Technologies Ltd. is a small-cap IT firm with a Rs. 640 Cr. market valuation. Based in Cumming, Atlanta, Georgia, Moldtek Technologies Inc. is a renowned global partner for engineering and technology solutions, and it is a $400 million subsidiary of the Moldtek Group. For more than 22 years, the company has been offering engineering services to its clients in sectors such as construction, BIM, automotive BIW, utilities, telecom, Connection Design, pre-engineered metal buildings etc. The IT stock is in focus this week as it is going to trade ex-dividend in 2 days on 12th April for a payout of Rs 2 per share.

Mold Tek Technologies Dividend

The Board of Directors of the company at its meeting held on 3rd April 2024, have, inter-alia, considered and approved an interim dividend of Rs 2 per share at a face value of Rs 2 i.e. 100% for the financial year FY24.
"The record date for reckoning the list of equity shareholders who will be entitled to receive the said interim equity dividend shall be Friday, 12th April, 2024. The interim dividend will be paid to such shareholders on or before Thursday, 2nd May, 2024," said Mold Tek Technologies in a regulatory filing.

Mold Tek Technologies Financials

In the December 2023 quarter, the company's stand-alone revenue from operations climbed 2.9% to Rs. 37.53 crore, up from Rs. 36.47 crore in the same quarter of 2022. The net profit of the firm in Q3FY24 was Rs. 6.95 crore, a 23.99% drop from Q3FY23's Rs. 9.14 crore. EBITDA plummeted 16.3% in the reporting period to Rs. 11.30 crore from Rs. 13.50 crore in the corresponding quarter of FY23.

Mold Tek Technologies Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said MOLDTECH is currently trading at Rs 236. Recently, it broke out of its daily trendline and underwent a retest. A potential breakout above Rs 250 could propel the stock towards the Rs 282 level, with immediate resistance noted at Rs 260. Conversely, Rs 210 serves as a crucial support level. Additionally, according to the Fibonacci extension, the price has closed above the 220 level and is sustaining, indicating a potential reversal from support.

Furthermore, MOLDTECH is trading above key Exponential Moving Averages (EMAs), including the 20-day and 50-day EMAs. This signifies a robust bullish trend, suggesting the possibility of continued upward movement. The Relative Strength Index (RSI) currently stands at 52.28, on an upward trajectory, indicating growing buying momentum. Collectively, these technical indicators imply that MOLDTECH has the potential to reach the Rs 282 target in the near term.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 210 to protect the investment in case of an unexpected market reversal. A prudent strategy would involve considering buying opportunities on dips at levels around Rs 230 and Rs 225.

In summary, based on technical analysis and prevailing market conditions, MOLDTECH appears to present a promising buying opportunity for those targeting a Rs 282 price objective. It is crucial to implement prudent risk management strategies to navigate potential market fluctuations.

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.