Hinduja Global Solutions shares tank 15% after turning ex-buyback & ex-dividend

Shares of Hinduja Global Solutions (HGS) fell sharply in Monday's trade after turning ex-buyback and ex-dividend. The stock slumped 15.13 per cent to hit a day low of Rs 1,151.40 over its previous close of Rs 1,356.60. Around 13,000 shares changed hands today on BSE, which was more than double compared to the the two-week average volume of Rs 5,905 shares. Turnover on the counter stood at Rs 1.62 crore, commanding a market capitalisation (m-cap) of Rs 6,470.50 crore.

At today's day low of Rs 1,151.40, the counter traded 32.20 per cent lower from its one-year high of Rs 1,698.15, hit on August 24 last year. That said, it traded 35.94 per cent higher from its 52-week low of Rs 847, touched on May 13, 2022.

The scrip has slipped 12.61 per cent in the last six months. However, it has climbed 9.33 per cent in the past one year.

Hinduja Global had announced an interim dividend of Rs 2.5 per share. The dividend would be paid on March 15.

And, HGS' buyback price was fixed at Rs 1,700 per equity share for an aggregate consideration not exceeding Rs 1,020 crore, excluding buyback tax.

In the December 2022 quarter (Q3 FY23), the company declared a consolidated net income of Rs 1,165 crore compared to Rs 1,075 crore in Q3 FY22, representing a year-on-year (YoY) growth of 8.30 per cent. For the year ended March 31, 2022, HGS had revenues of Rs 5,795.90 crore.

The stock was last seen trading lower than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 33.19. A level below 30 is defined as oversold while a value above 70 is considered overbought. The lender's stock has a price-to-equity (P/E) ratio of 2.89.

Hinduja Global has a one-year beta of 0.73, indicating low volatility on the counter.

The company recently completed the acquisition of a 100 per cent stake in TekLink International for $58.8 million. The acquisition, HGS said, would strengthen the company's digital solutions business by adding enhanced expertise in building data platforms, analytics and financial planning.

Hinduja Global is a mid-cap company, engaged in the business of knowledge process outsourcing (KPO) and business process outsourcing (BPO).

Meanwhile, Indian equity benchmarks jumped in early trade, led by gains in technology, metals, banks, financials and energy stocks.

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