Rs 24/Share Dividend: Ex-Date In 2 Days On 5th April; Buy To Be Eligible?

As of today's BSE closing session, ESAB India, a mid-cap company in the capital goods category, has a market capitalization of Rs 8,196.09 Cr. In the realm of welding and cutting tools and supplies, ESAB is a pioneer. For nearly every fabrication, welding, and cutting process and application, including those in the shipbuilding, aerospace, automotive, pipeline, power generation, repair and maintenance, process industry, transport, and mobile machinery sectors, among others, ESAB provides a vast array of machinery and solutions. Ahead of trading ex-dividend on April 5, the stock closed 0.63% higher on Wednesday at Rs 5324.55 per share on the BSE. The scrip reached a 52-week-high of Rs 6,542.65 on (12/11/2023) and a 52-week-low of Rs 3,221.35 on (26/04/2023).

ESAB India Dividend

"The Board of Directors of the Company at its meeting held today i.e., 27th March 2024 has declared Second Interim Dividend of Rs. 24/- per equity share of Rs.10/- each (240%) for the financial year ending 31st March 2024 resulting in an outflow of Rs. 36,94,32,480/- (subject to deduction of tax at source where applicable). The said Second Interim Dividend declared by the Board of Directors would be paid to the equity shareholders on 24th April 2024," said ESAB India in a regulatory filing.

As per the data available on BSE, the company has fixed 5th April as the record date for the purpose of the above-said dividend and due to the T+1 settlement mechanism the stock shall trade ex-dividend on the same day.

ESAB India News

"Notice is hereby given that a meeting of the Board of Directors of the Company will be held on 23rd May 2024, Thursday to take on record the Audited Financial Results for the financial year ended 31st March 2024. The Audited Financial Results for the financial year ended 31st March 2024 will be sent to you within 30 minutes of closure of the Board Meeting. The Audited Financial Results is due for publication in (i) Business Standard - In English (ii) Makkal Kural - In Tamil. As per the Company's Code of Conduct to regulate, monitor and report trading by Designated Persons framed pursuant to SEBI (Prohibition of Insider Trading) Regulations, 2015 read with the amendment regulations, 2018 the Trading Window for the purpose of transacting in Company's Shares will remain closed with effect from 1st April 2024 to 25th May 2024 (both days inclusive) i.e., 48 hours after the declaration of the Audited Financial Results of the Company for the financial year ended 31st March 2024. Accordingly, all the designated employees (including Directors) of the Company have been intimated not to trade in the company's shares during the aforesaid period of closure of Trading Window," said ESAB India in a regulatory filing on 28th March 2024.

ESAB India Financials

On a standalone basis, the company declared revenue from operations of Rs 301.45 crore in the December 2023 quarter up 12.74% from Rs. 267.39 crore in the December 2022 quarter. Its quarterly net profit stood at Rs. 37.95 crore in Q3FY24 up 4.52% from Rs. 36.31 crore in Q3FY23. ESAB India said in a stock exchange filing that its EBITDA for the reported quarter reached Rs. 54.74 crore, up 6.11% from Rs. 51.59 crore in the same quarter of FY23.

ESAB India Share Price Target

"ESAB INDIA LIMITED, engaged in the welding consumables and welding equipment business, has emerged as a lucrative trading option following recent market developments. To elaborate, the broader metal and allied industry appears to be quite promising and could deliver substantial gains in the next two quarters. In this thriving category, ESAB India, which is displaying a bullish position for the mid-term, could be appealing. The company recently declared a 52.1% gain in a year and has a record of paying higher dividends of 1.47% than its sector which delivered only 0.48%. However, I recommend traders wait for some more dip opportunities to emerge so that they can maximize gains. At present, the stock's Relative Strength Index (RSI) is at 50 for weekly and 60 for daily timeframe, indicating that the stock is currently trading between the neutral and slightly overbought zone. In this regard, the most appropriate buying range for this stock would be between Rs. 5100 and 5290, with a healthy target of Rs. 5450-6000 for the next 3 to 8 months," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

"ESAB India is bearish on the Daily charts with strong resistance at 5448. A Daily close below support of 5252 could lead to a target of 4880 in the near term," said AR Ramachandran from Tips2trades.

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.