Miniratna PSU Stock: Rs 4 Dividend By Zero-Debt Railway Company, Record Date 23rd August; Buy To Be Eligible?

Given that the stock will reach a record date on August 23 for the upcoming dividend of Rs 4 per share, Indian Railway Catering and Tourism Corporation (IRCTC), a Mini-Ratna PSU under the Ministry of Railways, is probably going to be in the spotlight in the following sessions.

IRCTC Dividend

"The Board of Directors has recommended a Final Dividend of Rs 4/- per share (i.e., 200% on the paid up share capital) for the financial year 2023-24, amounting to Rs 320 crore, subject to approval of the shareholders in the ensuing Annual General Meeting (AGM). This Final Dividend is in addition to the Interim Dividend of Rs 2.50 per share (i.e., 125% of the paid-up share capital) declared by the Board of Directors in the month of November 2023. This makes total dividend for F.Y. 2023-24 as Rs 520 crore," said IRCTC in a stock exchange filing.

"The Company has fixed Friday, August 23, 2024 as the "Record Date" for the purpose of determining the members entitle to receive final dividend for the financial year 2023-24. The dividend, if declared at the AGM, will be paid within a period of 30 (thirty) days from the conclusion of the AGM," the company further informed stock exchanges.

IRCTC Q1 Results

In the first quarter that ended in June 2024, Indian Railway Catering and Tourism Corporation (IRCTC) recorded a 33 per cent rise in its consolidated net profit at Rs 308 crore. In the same quarter of the previous fiscal year, it was Rs 232 crore. For the quarter under review, the total revenue from operations was Rs 1,120 crore, a 12% increase from Rs 1,002 crore during the same time the previous year. For the April-June 2024 period, the firm recorded an EBITDA of Rs 375 crore, a 9% increase over the Rs 342 crore reported during the same period the previous year while margins dropped slightly to 33.5%.

IRCTC Share Price Target

Hardik Matalia - Derivative Analyst at Choice Broking said, "IRCTC is currently exhibiting a sideways to bearish trend, trading around 928. The stock has struggled to break above its short-term (20-day) and medium-term (50-day) EMAs and is hovering near its long-term (200-day) EMA at 925 levels. With the stock trading around these crucial support zones, a break below could lead to further declines towards the 850-800 range. On the upside, fresh buying opportunities may arise if the stock surpasses the 980 level."

"The Relative Strength Index (RSI) is currently around 39.5 and trending downwards, indicating weakening buying momentum. This suggests the potential for continued declines, posing a challenging outlook for investors. Overall, the analysis points to a cautious outlook for IRCTC. Investors should monitor the stock's price action closely and consider implementing risk management strategies to protect their investments. Given the stock's current position, any breach of key support levels could signal further downside potential," the analyst recommended.

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.