Why is Majesco giving so much dividend?

It is a signal for investors to sell, rather than buy into the company, they said. Majesco made nearly ₹3,200 crore after selling its stake in its US subsidiary, Mastek. The majority of its dividend came from the stake sale and with the company’s profit distributed as the dividend to the shareholders.

Should we buy Majesco share for dividend?

Majesco has also launched a Rs 631 crore buyback program to return value to its shareholders. This is good news for existing investors but new investors should be wary of buying Majesco shares. After the dividend payout, the company will only have Rs 103 crore as cash and real estate of Rs 70 crore.

What is the dividend declared by Majesco?

The board of directors of Majesco, at its meeting held on December 15, 2020, had approved an interim dividend of Rs 974 (19,480 per cent) per equity share of face value of Rs 5 each for the financial year 2020-2021.

Is it advisable to buy Majesco?

Good news, investors! Majesco is still a bargain right now according to my price multiple model, which compares the company’s price-to-earnings ratio to the industry average. Majesco’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta.

Is it safe to buy Majesco shares?

Is it right time to invest in Majesco?

Majesco is still a bargain right now according to my price multiple model, which compares the company’s price-to-earnings ratio to the industry average. The stock’s ratio of 0.085x is currently well-below the industry average of 16.63x, meaning that it is trading at a cheaper price relative to its peers.

What will happen after Majesco dividend?

“Once the company pays the dividend, there will be nothing left in the company. It has cash of about Rs 103 crore and real estate of around Rs 70 crore—going by the annuity of Rs 5 crore it generates.

Is Majesco dividend a trap?

Majesco’s Dividend Trap Company declared a massive dividend of INR 974/ share for FY20. Stock also showed a good rally in July from ~ INR 400 levels to current levels of ~INR 1000.