2 Nifty stocks to trade ex-dividend on Friday. Do you own any?
Axis Bank and Adani Enterprises — will turn ex-dividend on July 7. Axis Bank had earlier announced a final dividend of Rs 1 per share, which is 50% of the face value for the financial year ending March 2023. The company has set July 7 as the record date to determine the eligibility of shareholders.
Shares of companies usually trade ex-dividend on the day or a day before the record date. When a company goes ex-dividend on a particular date, its stock does not carry the value of the next dividend payment. In the past 12 months, Axis Bank has declared an equity dividend amounting to Rs 1 per share, which results in a dividend yield of 0.10% from the current levels.
On Thursday, the company's shares closed 1.66% higher at Rs 982 on NSE. So far this year, the stock has gained about 5%. The private lender is among the top picks of Jefferies as it sees a 16% CAGR in adjusted profit over FY23-26.
«Valuations at 1.9x FY24 adjusted PB are attractive and at a 25% discount to ICICI. We see scope for rerating and maintaining our Buy call and target price of Rs 1,200, incling value of bank at 1.9x Jun-25 adjusted PB,» the brokerage said. Axis' FY23 annual report showed lending is margin accretive with the rise in the share of unsecured retail, SME, and priority loans while the share of retail deposits is below peers.
Meanwhile, Adani group's flagship entity Adani Enterprises will also trade ex-dividend on Friday as the company had earlier declared a dividend of Rs 3.5 per share for FY23. The company had fixed July 8 as the record date for the said dividend. Its shares closed flat on Thursday at Rs 2,397.05 on NSE.
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