DIVIDEND DISTRIBUTION POLICY | BAJAJ AUTO SHARE DIVIDEND

DIVIDEND DISTRIBUTION POLICY | BAJAJ AUTO SHARE DIVIDEND & ACCENTURE STOCK Q4 RESULTS

The decision by the NSE to increase the dividend payout rate by 2.66% improves the return on equity (ROI) by better allocation of capital. It expects to improve several stock analyzes in the near term. It rose 2.5% on Thursday, despite the benchmark index falling more than 1%.

With market capitalization, the country's largest two-wheeler manufacturer noted on Thursday that it could declare a dividend of up to 90% of its total revenue if the excess cash exceeds Rs 15,000 crore. If the cash surplus is between Rs 7,500 crore and Rs 15,000 crore, the dividend amount is 70–90% of revenue. In the past, according to Capital data, the company's dividend payout was 50-60%, the highest in the automotive industry.

The company's currency and equivalent at the end of December 2020 was Rs 16,240 crore. Analysts expect net income of Rs 4,200-4,600 crore in the current financial year. This represents a dividend of Rs 1,31–143 per share considering the revised dividend policy, which is 60–70% higher than the estimated dividend for the year. It also represents a 4% dividend yield, which may attract long-term investors interested in high-yield stocks with good fundamentals.

The absence of major capital expenditure schemes over the next few years will improve dividend visibility. Furthermore, despite plans to build electric vehicles and high-performance bicycles at a cost of Rs 650 crore, it can still generate more than Rs 4,000 crore in free cash flow per year. Higher dividends will reduce the cost of books, increasing the RoE by 300–350 basis points compared to the RoE consensus estimate of 23–24% in the next fiscal year.

A large proportion of total exports will support revenue growth for the next financial year. Temporary production volume indicates an encouraging scenario for the company's volume of exports, which may come close to FY20 levels. The total export volume of two-wheelers for the next financial year will be higher than current and domestic sales. The pressure on rims is slightly less than the share of more expensive bicycles due to the cost of surplus raw materials. This will increase revenue by more than 20% in the financial year.

At a closing price of Rs 3,663.5 on Thursday, the stock traded 19 times a year on its upcoming earnings. This is 7% above the long term average.

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Accenture's global IT blockbuster earnings set a strong performance platform from India's IT shares on Friday as investors were able to demonstrate similar performance in the March quarter.

Accenture has increased its guidance for the fiscal year ended August 2021 to 6.5-8.5 percent from the previous 4-6 percent, suggesting that Indian IT companies may report strong growth in the March quarter of next month.
In US dollar terms, Accenture's revenue grew 8 percent year-on-year to $ 12.09 billion for the quarter ended February. This has created strong visibility in the consulting and outsourcing businesses. The IT company's revenue was between $ 11.55 billion to $ 11.95 billion, more than $ 140 million.

Accenture reported that its successful contract for the quarter grew 13 percent to $ 13 billion per year. The company reported each new consultancy and outsourcing of $ 8.0 billion.

An anonymous analyst said, "It has been more stable than we expected. The company has returned to the growth of an earlier epidemic. Indian technology should give it a thumbs up tomorrow," said an anonymous analyst.

 
Accent's strong deal has been a good win for IT companies, who have announced the success of the Swashbuckling deal in recent quarters to help with the growing demand for digital services. For customers in the US and Europe.

Information technology companies have benefited from the rapid transition to digital services and cloud computing by global companies triggered by the COVID-19 epidemic, forcing companies to be virtual overnight due to long-distance work .
The company said Accenture expects to reach $ 12.95 billion in the third quarter of 2020-21 from $ 12.55 billion, which will increase the local currency by 10–13 percent.

UK CEO Julie Sweet said, "We have seen a more robust, broad-based demand for our services across geographic markets and industries, and we are offering new bookings as well as great profits and free cash flow." " company.

IT companies in India will take 15.0-15.1 percent of Accenture for the entire year preceding 14.8-15.0 percent.