PSU Stock With High Dividend Yield To Consider Share Buyback Plan

Mid-cap commodities firm Gujarat Narmada Valley Fertilisers & Chemicals Ltd has a market valuation of Rs 10,149.62 Cr as of Monday's closing session. Gujarat Narmada Valley Fertilizers & Chemicals Limited.(GNFC), is a joint enterprise promoted by the Government of Gujarat and the Gujarat State Fertilizers & Chemicals Ltd.(GSFC). The corporate portfolio of this company includes chemicals and petrochemicals, energy, electronics and telecommunications, and information technology.

"Pursuant to Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby notify that a Meeting of the Board of Directors of the Company will be held on Wednesday, the 8th November, 2023, inter-alia, to approve the Unaudited Standalone and Consolidated Financial Results for the Second Quarter and First Half of the Financial Year ended 30th September, 2023," said GNFC in a stock exchange filing.

"At the said Board Meeting scheduled on Wednesday, 08-11-2023, the Directors will consider proposal for Buy Back of Equity Shares of the Company in accordance with the provisions of the Companies Act, 2013 and SEBI (Buy-back of Securities) Regulations 2018," the company informed to the stock exchanges.

Gujarat Narmada Valley Fert & Chem. has announced an equity dividend of 300.00% at a face value of Rs 10, or Rs 30 per share, for the financial year ended March 2023. The dividend yield at the current share price of Rs. 653.05 is 4.6%. The company has a solid track record of dividend declarations during the past five years. Gujarat Narmada Valley Fertilisers & Chemicals Ltd. has issued 22 dividends since July 17, 2001, according to Trendlyne statistics.

Gujarat Narmada Valley Fertilisers & Chemicals (GNFC) recorded a net profit of Rs 88 crore in Q1FY24, a fall of 84.6 per cent (YoY). Gujarat Narmada Valley Fertilisers & Chemicals had a net profit of Rs 572 crore in the same quarter of the previous fiscal, the firm said in a regulatory filing. The revenue from operations for the first quarter of FY24 was Rs 1,652 crore, down 38.7% from Rs 2,696 crore in the same quarter of FY23. In the first quarter of this fiscal year, EBITDA plummeted 86.2 per cent to Rs 105 crore from Rs 763 crore in Q1FY23.

On Monday, the shares of Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) closed on the BSE at Rs 653.05 apiece. The scrip hit a 52-week-high of Rs 735.25 on (25/10/2022) and a 52-week-low of Rs 484.45 on (28/03/2023).