Shares of two Tata group firms Tata Elxsi and Voltas Ltd turned ex-date for divdend on Tuesday. While Tata Elxsi had declared a final dividend of Rs 70 per share, Voltas had announced Rs 5.50 per share dividend.
At 10.15 am, shares of Tata Elxsi were trading 1.66 per cent lower at Rs 7,129.75 on BSE. Voltas shares were up 0.44 per cent at Rs 1,517.35.
Voltas declared its dividend on May 7, which it said would be paid or despatched on or after fifth day from conclusion of ensuing 70th Annual General Meeting, subject to approval of shareholders of the company.
Tata Elxsi had on April 23 announced a dividend of 700 per cent on face value of Rs 10 each, for the financial year 2023-24, subject to tax, which it said would be dispatched on or after the seventh day from the conclusion of the 35th Annual General Meeting, subject to the approval of the shareholders of the company.
Tata Elxsi shares are down 19 per cent in 2024 so far. In the past one month, the stock is down 5 per cent. Voltas has gained 7 per cent in the past one month. This Tata group stock has soared 55 per cent year-to-date.
In the case of Voltas, IIFL Securities said the Tata firm has increased focus on distribution for a well-spread product portfolio, to arrest and reverse the decline in market share in an intensely competitive market. The new Chennai plant would aid competitiveness for South/West markets, IIFL Securities said.
"Voltbek, too, is expanding retail touchpoints to expand market share further. Provisions in international projects hurt profitability and RoE in FY24 with the company expecting minimal further provisions incrementally. We raise FY25-26 estimates by 5 per cent on the very strong 1Q due to intense heat. We retain ADD," it said while suggesting a target of Rs 1,620 on the stock.
Voltas, as a part internal restructuring, executed the share purchase agreement with Universal MEP Projects, a step down wholly owned subsidiary in Singapore for transfer of company's direct investments in overseas subsidiary companies, namely - Weathermaker FZE in UAE (100 per cent); Saudi Ensas Company for Engineering Services in Saudi Arabia (92 epr cent) and Lalbuksh Voltas Engineering Services and Trading LLC in Sultanate of Oman (20%) to UMPPL.
The Tata Exlsi management, as per Arihant Capital Markets, expects improvements in media and communications segments in FY25, while the IT firm expects transportation segment growth to be delayed, emphasising the need to maintain margins.