High Promoter Holding Debt-Free Stock Okays Huge Dividend of Rs 100/Share: Buy?

Disa India has a market valuation of Rs 2,167 Cr, making it a small-cap company in the capital goods industry. The company produces and distributes premium industrial equipment. With a major focus on supplying the aluminium and iron foundry sectors, the firm offers state-of-the-art solutions to a wide range of industries. The firm provides its global clientele with cutting-edge aluminium die casting, melting, and dosing solutions in addition to top-notch foundry and shot blasting equipment.

Disa India Dividend

The Board of Directors considered and approved "Payment of first Interim Dividend of Rs. 100/-(1000%) per equity share of the face value of Rs. 10/-each for the Financial year 2023-24, payable to the registered shareholders of the Company as on the Record Date i.e., February 16, 2024, amounting to Rs. 145.42 Million. The said Interim dividend will be paid on or before March 6, 2024 within 30 days from the date of declaration," said Disa India in a stock exchange filing.

Disa India Financials

On a consolidated basis, the company's net sales for the December 2023 quarter were Rs. 61.04 crore, up 15.69% from the year-ago quarter's Rs. 52.76 crore. In Q3FY24, its net profit of Rs. 5.75 crore was recorded, a 145.73% increase from Rs. 2.34 crore in Q3FY23. Its EBITDA jumped by 94.85% from Rs. 4.66 crore in the same quarter last year to Rs. 9.08 crore in the quarter under review.

Disa India Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said DISAQ is currently trading at 14995.95 levels and appears to be in a consolidation phase within the range of 14300 - 16300. This range aligns with a robust support zone at 14300, encompassing the 100-day Exponential Moving Averages (EMA). The convergence of these factors suggests a significant level of stability and a potential opportunity for traders and investors.

The consolidation within this range reflects a delicate equilibrium between buying and selling pressures, indicating a period of price discovery and market participants reassessing their positions. It is noteworthy that the support zone includes the 100-day EMA, further reinforcing its significance.

A potential breakout above the upper boundary of this consolidation range, specifically above 16300 levels, could act as a catalyst for a bullish move. In such a scenario, traders might look to capitalize on the upward momentum, with a target set at 17700 and possibly beyond.

The Momentum indicator, Relative Strength Index (RSI), currently stands at 48 levels, signalling a neutral stance. This suggests that there is no significant bias towards overbought or oversold conditions, supporting the notion of a balanced market.

Traders and investors are advised to closely monitor the price action and be vigilant for a potential breakout. The support range, particularly around 14300 levels, could serve as a strategic entry or exit point. Overall, the analysis points towards a cautiously optimistic outlook for DISAQ, contingent on a decisive breakout above the upper boundary of the consolidation range.

Disa India Shareholding Pattern

As per the data of Trendlyne, the debt-free company Disa India recorded promoters' shareholding of 74.82%, FIIs stake of 0.02%, DIIs stake of 8.02%, and public stake of 17.14% during Q3FY24. The promoter stake of the company at the current level is much higher than its peers such as Thermax, Jupiter Wagons, Jyoti CNC Auto, Titagarh Rail, Action Construction Equipment, Elecon Engineering Company and Praj Industries.

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.