BackRakesh Jhunjhunwala stock surges ahead of dividend declaration. Should you buy?
Rakesh Jhunjhunwala portfolio: Big Bull-backed company has informed Indian exchanges about the board meeting date to consider interim dividend announcement
PremiumRakesh Jhunjhunwala portfolio: After sliding into the over sold zone, Metro Brands shares finally managed to close above its down trend line on Friday. According to stock market experts, this Rakesh Jhunjhunwala holding company has announced date for declaration of interim dividend and hence there is bulk buying in the stock. They said that footwear company has reported positive numbers in Q3FY22 and outlook for footwear company business looks positive in FY23. The secondary market experts went on to add that Metro Brands share price is available at much discounted price against its peers like Bata and Relaxo. So, in the wake of positive outlook, they advised positional investors to buy the stock for medium to long term time horizon.
Advising positional investors to buy this Rakesh Jhunjhunwala stock; Avinash Gorakshkar, Head of Research at Profitmart securities said, "Metro Brands has reported positive Q3 FY22 numbers. In the wake of ease in Covid-19 crisis, outlook for footwear business looks positive. So, Metro Brands is expected to report more better numbers in coming quarters, especially in FY22-23. Apart from this, valuations of the company is more attractive in comparison to its peers like Bata and Relaxo. So, this Raeksh Jhunjhunwala-backed company is expected to attract secondary market investors who want to invest in footwear stocks."
On how Metro Brands business is expected to grow in coming quarters, Avinash Gorakshkar of Profitmart Securities said, "During Covid-19 pandemic, Metro Brands has managed to foray into online business segment. Its offline business model is already strong and once there is ease in Covid-19 pandemic, we can expect sharp rise in its business volume as it would be able to garner business from both online and offline platforms. So, FY23 is going to become a good finan cial year for the company and hence one should keep Metro Brands shares as portfolio stock for medium to long term."
Expecting sharp upside bounce in this Rakesh Jhunjhunwala portfolio stock; Anuj Gupta, Vice President at IIFL Securities said, "After dipping into the oversold zone, Metro Brands shares have managed to overcome from this zone and the stock finally closed above its down trend line on Friday. Short-term investors can buy this Rakesh Jhunjhunwala stock at current levels for ₹610 target maintaining stop loss at ₹515 apiece levels. After sustaining above ₹610 levels, it may go up to ₹6802 and ₹800 levels in medium to long term."
Metro Brands share dividend
Rakesh Jhunjhunwala-backed company has informed Indian exchanges about the board meeting date to consider interim dividend announcement. The footwear company informed exchanges about the decision citing, "Pursuant to Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform you that the Meeting of the Board of Directors of Metro Brands Limited will be held on Monday, March 07, 2022 inter alia to consider declaration of an Interim Dividend for the Financial Year 2021-22. The Record Date for determining the entitlement of the shareholders for the payment of aforesaid interim dividend shall be March 19, 2022, subject to the approval of the interim dividend by the Board of Directors."
Rakesh Jhunjhunwala share holding in Metro Brands
According to information given by Rakesh Jhunjhunwala to the BSE post-listing of Metro Brands shares, Big Bull holds 3,93,33,600 Metro Brands shares, which is around 14.50 per cent of the total issued paid-up capital of the footwear company.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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