320% Dividend: SBI Mutual Fund-Backed Stock Declares Rs.32/Share Dividend; Buy?

A mid-cap company in the capital goods industry is ESAB India. In the realm of welding and cutting equipment and supplies, ESAB is a pioneer. For almost every fabrication, welding, and cutting process as well as application to the shipbuilding, aerospace, automotive, pipeline, power generation, repair & maintenance, and process industries, ESAB provides a vast array of equipment and solutions. Leading the way in fabrication and specialised gas control technologies, ESAB Corporation offers our partners cutting-edge machinery, consumables, automation, robotics, and digital solutions.

ESAB India Dividend

In its meeting on November 10, 2023, the Board of Directors decided to issue an interim dividend for the financial year ending on March 31, 2024, of Rs. 32/-per equity share, or 320%, with a face value of Rs. 10/-per share. The record date for the said interim dividend 2023-24 fixed on 25th November 2023 and 8th December 2023 has been fixed as the payment date.

ESAB India Q2 Results

The company reported a net income of Rs 304.29 Cr in Q2FY24 up by 9.30% YoY from Rs 278.39 Cr in Q2FY23. The company reported net expenses of Rs 252.14 Cr in the quarter under review compared to Rs 235.41 Cr in the year-ago quarter. Its EBIT reached Rs 52.15 Cr in the September 2023 quarter as against Rs 42.98 Cr in the year-ago quarter. The company said its net profit stood at Rs 38.41 Cr in Q2FY24 compared to Rs 31.91 Cr in Q2FY23.

ESAB India Share Price Target

Deven Mehata-Equity Research Analyst at Choice Broking said, "ESABINDIA, currently trading at 5875 levels, recently experienced profit booking after reaching new all-time highs at 6585 levels. The stock has found support around its 20-Day Exponential Moving Average (EMA), indicating a potential stabilization in the short-term. The stock is trading above both its medium-term 50-Day EMA and long-term 200-Day EMA levels, reinforcing a positive trend outlook. However, the recent correction suggests a moderation in the strong bullish momentum."

"The Relative Strength Index (RSI), a momentum indicator, has cooled off from the overbought levels of 85 to 53. This suggests a reduction in the extreme bullish sentiment but still indicates a reasonably positive market sentiment. For investors holding positions from lower levels, it's advisable to consider booking partial profits, taking advantage of the recent high levels. Meanwhile, the remaining quantity can be held with a trailing stop loss set at the important support level of 5550. This strategy allows investors to secure gains while giving the stock room for potential further upside," the analyst further added.

ESAB India Shareholding Pattern

During Q2FY24, the company reported promoters' shareholding of 73.72%, FIIs stake of 1.08%, DIIs stake of 13.00% and public stake of 12.19%. As per the shareholding pattern of ESAB India for the July to September 2023 quarter, SBI Retirement Benefit Fund - Conservative Plan held 15,11,576 shares or 9.82% stake whereas Nippon Life India Trustee Ltd A/c - Nippon India Small Cap Fund held 3,26,882 shares or 2.12% stake in the company.

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.