Mahindra Logistics witnessed strong buying on Wednesday ahead of its dividend payout next month. Also, today, Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher believes the stock's RSI indicator has hinted for a strong move and has potential upside ahead. The analyst has recommended buying this stock.
At the time of writing, Mahindra Logistics' share price traded at ₹382.50 apiece up by ₹14.70 or 4%. The stock touched an intraday high of ₹387 apiece earlier in the day. The second half of the current trading session witnessed heavy buying in the stock.
On Monday, the company explained the deduction of tax at source on the final dividend recommended for the fiscal year FY23.
Mahindra Logistics final dividend for FY23:
Mahindra Logistics is set to pay ₹2.50 per share as the final dividend for FY23, having a face value of ₹10 each fully paid up. In percentage terms, the dividend payout is to the tune of 25% of the face value.
In its regulatory filing, Mahindra Logistics said, the final dividend for FY23, if approved and declared at the ensuing AGM will be paid through
permitted modes, on or after Tuesday, 25 July 2023 within stipulated timelines, to those Members whose names appear in the Register of Members of the Company or List of beneficial owners maintained by the Depositories as at the close of business hours of Friday, 14 July 2023.
Hence, those investors who have Mahindra Logistics shares in their Demat account by the end of July 14, 2023, will be eligible for the final dividend.
The company's annual general meeting (AGM) is scheduled to be held on July 24.
Mahindra Logistics has asked all shareholders to ensure that details such as Permanent Account Number (“PAN”), residential status, category of holding, e-mail ID, full bank account details (IFSC, MICR, etc.), postal address are updated, in their respective demat account(s) maintained with the Depository Participant(s) (“DP”) for equity shares held in demat mode or with the Registrar and Share Transfer Agent of the Company – Link Intime India Private Limited (“RTA”), in case of equity shares held in physical form, on or before Friday, 14 July 2023 for seamless electronic payout and receipt of subsequent communications on the dividend.
For resident individual shareholders, a TDS of 10% is levied on the final dividend who have registered their valid PAN details with the DP/RTA. However, the TDS rate doubled to 20% if the shareholders do not hold a valid PAN, or have not registered their valid PAN with DP/RTA, or whose PAN is not linked with Aadhaar by June 30, 2023.
However, there is no TDS if the total dividend paid during FY23 does not exceed ₹5,000. Also, no TDS will be deducted for resident individual shareholders in the case of Form 15G or Form 15H for individuals above the age of 60 years.
In the fiscal FY22, Mahindra Logistics paid a dividend of 20% or ₹2 per share. While in FY21, the dividend payout was 25% or ₹2.5 per share.
Should investors buy Mahindra Logistics stock price?
On Wednesday, in a note, Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher said, "The stock has consolidated for quite some time near the 360-375 zone and currently has indicated a bullish candle pattern on the daily chart to move past the significant 50EMA level of 370 to improve the bias."
She further added that the “RSI indicator has indicated a strong move and has much upside potential from here on to justify our positive bias and with the chart looking attractive, one can buy and accumulate the stock for an upside target of 450 keeping a stop loss of 350.”
