Rs 10/Share Dividend: Small Cap Chemical Stock To Trade Ex-Dividend Soon For 500%: Buy?

Small-cap firm GOCL Corporation Ltd operates in the chemical industry. One of India's largest manufacturers of energetics is GOCL. It has provided the Indian mining and infrastructure industries with energetics and commercial explosives for 60 years. According to information on the BSE, the company has declared a 500% dividend for FY23, and the shares will begin trading ex-dividend on September 14, 2023.

GOCL Dividend

"Pursuant to Section 91 and other applicable provisions, if any, of the Companies Act 2013 and Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the Register of Members and Share Transfer Books of the Company will remain closed from Friday, September 15, 2023 to Thursday, September 21, 2023 (both days inclusive) for the purpose of ascertaining the entitlement of members for the dividend of Rs. 5.00 per share (250%) for the financial year 2022-23 and a Special Dividend of Rs. 5.00 per share (250%), totalling to a Dividend of Rs.10.00 per share (500%) and Annual General Meeting for the FY 2022-23," said GOCL Corporation in a stock exchange filing.

According to the company, the 62nd Annual General Meeting (AGM) is scheduled to be held on Thursday, September 21, 2023.
The GOCL Corporation 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 438.70 is 2.29%. The company has a solid track record of dividend declarations during the past five years. GOCL Corporation Ltd. has issued 27 dividends since October 9, 2002, according to data from Trendlyne.

GOCL Financials

On a standalone basis, the company recorded net sales of Rs 36.28 crore in the June 2023 quarter dropping by 18.59% from Rs. 44.57 crore in the June 2022 quarter. Its net profit was Rs. 10.65 crore in the first quarter of FY24, down 92.87% from Rs. 149.29 crore in the same quarter of FY23, and its EBITDA is Rs. 17.12 crore, down 92.59% from Rs. 230.97 crore. GOCL Corp's earnings per share (EPS) dropped from Rs. 30.12 in June 2022 to Rs. 2.15 in June 2023.

On a consolidated basis, the company reported net sales of Rs 197.22 crore in the June 2023 quarter dropping by 16.66% from Rs. 236.66 crore in the June 2022 quarter. Its consolidated PAT was Rs. 12.16 crore in Q1FY24, down 90.28 percent from Rs. 125.05 crore in Q1FY23, and its EBITDA is Rs. 57.43 crore, down more than 74% as much from Rs. 229.40 crore. From Rs. 25.22 in June 2022 to Rs. 2.45 in June 2023, GOCL Corp.'s EPS has fallen.

GOCL Corporation Share Price Target

Deven Mehata, Equity Research Analyst of Choice Broking said, the stock has recently shown resilience by bouncing back from a robust support level at 420.80. This suggests that there is significant buying interest in the stock at this level, potentially providing a strong base for future price movements. Moreover, the stock has been exhibiting a bullish trend, moving steadily higher. This upward momentum is supported by decent trading volumes, indicating that there is substantial market participation and confidence in the stock's trajectory.

However, it's important to note that there is a minor resistance level near 450 levels, which could temporarily halt the stock's ascent. Breaking through this resistance could pave the way for further gains, possibly reaching levels around 480 and beyond.

Crucially, the stock is currently trading above all important moving averages, reinforcing the notion of a bullish trend. Additionally, the Relative Strength Index (RSI) stands at a comfortable level of 61, indicating that the stock is neither overbought nor oversold.
For investors who have entered positions at lower levels, it's advisable to maintain a trailing stop-loss strategy near the support level of 420. This helps protect profits and manage risk as the stock continues its upward trajectory.

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.