Dividend of Rs 5 per share: record date June 13; should I purchase the auto stock?

As of Tuesday’s closing session, CIE Automotive India Ltd.’s market capitalization was Rs 18,886.56 crore. Automotive components with many technologies supplied by CIE Automotive India. The stock has gained 4.05% over the last five trading sessions and ended yesterday at Rs 497.85 per share, up 4.36%.

However, brokerage firm Axis Securities believes there is still more upside potential for the stock, with a target price of Rs 540–565. This is a good stock recommendation for market watchers who want to be eligible for the company’s recommended dividend of Rs 5 per share.

Dividend for CIE Automotive India
“We wish to inform that the Board of Directors of the Company (the Board) at its meeting held today, i.e., February 19, 2024, recommended to the members, for their consideration and approval at the ensuing 25th Annual General Meeting of the Company, a final dividend of Rs. 5.00/- (Rupees Five only) per ordinary equity share of face value of Rs. 10/- each for the financial year ended December 31, 2023,” the business stated in a regulatory filing.

Date of the CIE Automotive India Dividend Record
In addition, the Board has approved the company’s closure of its share transfer Books and register of members from Friday, June 14, 2024, to Thursday, June 20, 2024 (inclusive), in order to facilitate the AGM and identify the shareholders who may be eligible for the final dividend, should that be declared by the members.

According to a stock exchange filing by CIE Automotive India, the dividend on ordinary (equity) shares for the year ended December 31, 2023, as recommended by the Board of Directors and as may be declared at the ensuing AGM, will be paid to those shareholders or their mandates within 30 days of the AGM date. These shareholders’ names appear as Beneficial Owners in the data made available by National Securities Depository Limited and Central Depository Services (India) Limited for the shares held in electronic form at the close of business hours on Thursday, June 13, 2024; and whose names appear as Members in relation to the shares held in physical form as per the Register of Members of the Company on the same day.

News from CIE Automotive India
We would like to notify you that the company’s Board of Directors will meet on Thursday, May 2, 2024, among other things, to discuss and approve the Company’s (Standalone and Consolidated) unaudited financial Results for the quarter that ended on March 31, 2024.

Furthermore, the Trading Window for dealing in the Company’s securities will remain closed for all designated persons of the Company and their immediate relatives starting on April 1, 2024, and it will remain closed until May 4, 2024 (both days inclusive), in accordance with the Company’s Code of Conduct to Regulate, Monitor, and Report Trading in the Company’s Securities by Designated Persons and Their Immediate Relatives,” CIE Automotive India has informed stock exchanges.

Target price for CIE Automotive India shares: Rs 468, trend reversal: Rs 468, buy range: Rs 496-488, target: Rs 540-565, timeframe: 3-4 weeks

“On the weekly chart, a powerful bullish candle supported India’s noteworthy breakthrough above the medium-term “Downward Sloping Trendline” pattern, suggesting a prolonged continuation of the medium-term uptrend. The intensity of the breakout is validated by the rise in volume activity during the breakout, which indicates a spike in participation.Furthermore, the break above the 492-475 range’s consolidation zone points to an uptrend that will likely continue beyond the consolidation phase.

On a daily chart, the stock is showing a pattern of rising high-low formations while staying above a medium-term upward-sloping trendline, indicating a prolonged rally. A bullish bias has been shown by the daily Relative Strength Index (RSI) positive crossing above its reference line. The stock is anticipated to rise towards prior swing highs after the breakout from the downward sloping trendline, with objectives set around 540 and 565 “According to a research from Axis Securities.