Mukul Agrawal Portfolio Stock Declares Rs 30/Share Interim Dividend: Buy?

A small-cap company in the consumer discretionary industry is MPS Ltd. MPS is a top worldwide supplier of digital learning platforms, content, and solutions. Today, MPS is a global partner to the top publishers, content aggregators, learning firms, libraries, and companies worldwide. Listed on India's major stock exchanges, MPS has a market valuation of more than Rs 2,500 crores. The company has announced a massive first interim dividend of Rs 30 per share for FY24, and it is also a stock in Mukul Agrawal's portfolio, thus these two factors will be the centre of attention on the stock in the upcoming days.

MPS Dividend

"The Board of Directors have declared the 1st Interim Dividend of INR 30 per equity share of face value of INR 10/- each for the financial year 2023-24. The same shall be paid on or before 25 November 2023, to those Members whose names appear in the Register of Members of the Company and/or Register of Beneficial Owners maintained by the Depositories and made available to the Company as on Record Date i.e. 06 November 2023, as fixed for this purpose," said MPS in a stock exchange filing.

MPS Q2 Results

On a standalone basis, the company recorded a net income of Rs 82.38 Cr during the quarter ended 30th September 2023 compared to Rs 77.91 Cr in the year-ago quarter. Its net expenses stood at Rs 49.42 Cr during the quarter under review as against Rs 47.71 Cr reported in the corresponding quarter of the previous fiscal. MPS said its EBIT was Rs 33.12 Cr in Q2FY24 compared to Rs 30.44 Cr in Q2FY23 while its net profit stood at Rs 24.19 Cr as against Rs 22.24 Cr in the same quarter of FY23.

On a consolidated basis, the net income of MPS reached Rs 134.52 Cr during Q2FY24 compared to Rs 128.21 Cr in Q2FY23. Its net expenses stood at Rs 93.73 Cr during the quarter ended 30th September 2023 as against Rs 91.75 Cr in the same quarter of FY23. MPS said its EBIT reached Rs 40.95 Cr in Q2FY24 which was Rs 36.73 Cr in Q2FY23 while its consolidated net profit reached Rs 30.03 Cr in Q2FY24 as against Rs 26.85 Cr in Q2FY23.

MPS Share Price Target

Mandar Bhojane-Equity Research Analyst at Choice Broking said "MPS is currently trading at 1510 and has displayed a recent decline in performance for this month. Analyzing the monthly chart, we observe the formation of an inverted hammer candlestick pattern, signaling a bearish sentiment in the stock. However, it's worth noting that the price is holding above the 1450 level, suggesting a degree of support."

"The stock seems to be in a consolidation phase, confined within the range of 1450 and 1635. If the price manages to close above 1635, it opens the path to potential upward targets around 1700 and 1785. Conversely, if it drops below 1450, it may encounter further downside targets at approximately 1400 and 1350 in the short term," said the equity research analyst.

"To reinforce this negative trend, the ADX indicator registers at 24, indicating a robust downward momentum. The RSI is at 40, emphasizing the bearish sentiment. Notably, the price is currently trading at the lower band of the Bollinger Bands and seems to be in a sideways, flat trend, implying the possibility of consolidation around the support level. In conclusion, MPS appears to be in a consolidation phase with support around 1450 and resistance near 1635. The technical indicators suggest a cautious outlook, with potential for a bullish move if it breaches 1635 and a bearish scenario if it falls below 1450," said Mandar Bhojane.

MPS Shareholding Pattern

During Q2FY24, the company reported promoters' shareholding of 68.34%, FIIs stake of 3.80%, DIIs stake of 0.60% and public stake of 26.42%. As per the shareholding pattern of July-September 2023 quarter of MPS, ace investor Mukul Mahavir Agrawal held 7,62,457 shares of the company in his portfolio or 4.46% stake in MPS.

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.