Multibagger Miniratna PSU Stock To Turn Ex-Dividend In 1 Day For Rs 5: Buy?

MSTC Limited is a Mini Ratna Category-I PSU under the administrative authority of the Ministry of Steel, Government of India. The firm is one of the top PSUs offering e-commerce services, delivering e-auction/e-sale, e-procurement services, and the development of specialised software and solutions. With a one-year return of 236% and a six-month gain of 150.51%, the PSU stock MSTC is one of Dalal Street's multibagger stocks. But, the more intriguing news is that Miniratna stock has declared a 50% interim dividend for FY24, with the record date falling on February 20, 2024.

MSTC Dividend

"The Board has also declared 2nd Interim Dividend @ 50% i.e. Rs. 5 per equity share of face value of Rs.10/-each for the financial year 2023-24. The interim dividend shall be paid within 30 days from the date of its declaration. As per Regulation 42 of the listing regulations the Board has also fixed 20th February, 2024 as the "record date" for the purpose of ascertaining the eligibility of shareholders for payment of Interim Dividend. The dividend will be credited to the account of the shareholders or the dividend warrant in respect thereof will be dispatched within 30 days from the date of its declaration," said MSTC in a regulatory filing.

MSTC Financials

The company's consolidated net profit in the December quarter grew by just 6.22 per cent year on year (YoY) to Rs 49.97 crore from Rs 47.03 crore in the corresponding period of the previous year. Revenue from operations jumped by 9.53 per cent to Rs 184.98 crore in Q3FY24 from Rs 168.88 crore in Q3FY23.

MSTC Share Price Target

MSTC is bullish but also overbought on the Daily charts with next resistance at 722. Investors should book profits at current levels as a Daily close below support of 606 could lead to a target of 462 in the near term, said AR Ramachandran from Tips2trades.

Disclaimer

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