Miniratna PSU Company Okays 2nd Interim Dividend For FY24: Buy To Be Eligible?

Under the administrative jurisdiction of the Ministry of Steel, Government of India, MSTC Limited is a Mini Ratna Category-I PSU. One of the top PSUs in the field, it offers e-commerce services to a wide range of industry sectors, including e-auction/e-sale, e-procurement, and development of specialised software and solutions. The stock ended on the BSE on Friday at Rs 986 apiece with a market cap of Rs 6,941.44 Cr.

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 the company in a stock exchange filing.

MSTC Financials

The company's consolidated net profit in the December quarter jumped by barely 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 climbed by 9.53 per cent to Rs 184.98 crore in Q3FY24 from Rs 168.88 crore in Q3FY23. EBITDA improved 19.9% from Rs. 70.10 crore in the same quarter of the previous fiscal year to Rs. 84.05 crore in the quarter under review.

MSTC Share Price Target

Deven Mehta - Equity Research Analyst at Choice Broking said MSTCLTD is presently trading at Rs 967, having experienced a correction from its all-time high of Rs 1165. Immediate support levels are identified at Rs 890 and Rs 800. Adopting a strategy of buying on dips would be prudent if a reversal is observed from these support levels.
The overall trend of the stock remains upward, supported by a consistent pattern of higher highs and higher lows on the daily chart, coupled with robust trading volume a clear indication of a bullish trend.If the price manages to close above the Rs 1050 level, there is potential for a new all-time high with a target of Rs 1280 in the short run.

The Relative Strength Index (RSI), after reaching an overbought zone, has retraced downside and is currently at 55, suggesting that the stock is still in an uptrend. The stock is currently trading near its 20-day exponential moving average (EMA) and above all the major supports of 50-day, 100-day, and 200-day exponential moving averages (EMA), while immediate hurdles on the upside are identified at Rs 1000 and Rs 1050.

Investors are advised to hold their long positions with a trailing stop-loss (SL) set at Rs 800. Considering potential retracements in the stock price, it is recommended to contemplate buying on dips.

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.