Rs 10/Share Dividend: Chemical Stock To Trade Ex-Dividend Next Week For 500%: Buy?

Mid-cap fertiliser company Gujarat State Fertilisers & Chemicals Ltd (GSFC) had a market valuation of Rs 7,072.98 Cr during Friday's closing session. The Gujarat State Government owns Gujarat State Fertilisers & Chemicals Limited, an Indian maker of chemicals and fertilisers. According to information from the BSE, the stock will begin trading ex-dividend on September 7th. The company has announced a dividend of Rs 10 per share for FY23.

GSFC Dividend

"The Register of Members and the Share Transfer Books of the company shall remain closed from Friday the 08th September, 2023 to Friday the 22nd September, 2023 (both days inclusive) for the purpose of ascertaining the entitlement for payment of dividend. Dividend upon its declaration at the Annual General Meeting, will be paid @ Rs.10.00 per equity shares of the company on or after 28th September' 2023 to those members whose names appear on the Register of Members of the Company on the Book Closure Date," said Gujarat State Fertilisers & Chemicals in a stock exchange filing.

Gujarat State Fertilisers & Chemicals has announced an equity dividend of 500.00% at a face value of Rs 2, or Rs 10 per share, for the financial year ended March 2023. The dividend yield at the current share price of Rs 177.50 is 5.63%. The company has a solid track record of dividend declarations during the past five years. Gujarat State Fertiliser & Chemicals Ltd. has issued 23 dividends since August 29, 2001, according to data from Trendlyne.

GSFC Financials

In the June 2023 quarter, the company's quarterly net profit was Rs. 112.46 crores, down 67.47 percent from Rs. 345.81 crore in the June 2022 quarter. The Vadodara-based maker of fertilisers and chemicals reported Q1FY24 sales of Rs 2,062.9 crore, down 31.6 percent from revenue of Rs 3,018 crore in Q1FY23. Q1FY24 EBITDA fell 72.9 percent to Rs 142.4 crore, while margins fell to 6.9 percent from 17.4 percent. Basic earnings per share (EPS) from continuing operations was 2.82 as opposed to 8.68 in the previous fiscal year, while diluted EPS from continuing operations was 2.82 in Q1FY24 as opposed to 8.68 in Q1FY23.

GSFC Share Price Target

"The script is trading near 52w high and currently giving a breakout from the classical Head & Shoulder chart pattern along with giving a breakout from the continuous Cup and Handle Chart pattern. Rsi is also trading in a strong Buy zone in higher timeframes and also price is sustaining above all its major moving averages. So, we recommend buying at the current market price with targets of 190-193 and our view will negated once the price closes below 167," said Kkunal Parar, Vice President · Choice Equity Broking Private Limited.
On Friday, the shares of Gujarat State Fertilisers & Chemicals closed on the NSE at Rs 177.50 apiece up by 1.20% over the previous close of Rs 175.40. The stock made a 52-week-high of Rs 183.40 on (18/05/2023) and a 52-week-low of Rs 116.10 on (28/03/2023).

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.