Rs 11.45/Share Dividend: Metal Stock To Trade Ex-Dividend Soon For 572.50%, Buy?

Mid-cap firm Gujarat Mineral Development Corporation Ltd operates in the metal industry. One of the top mining and mineral processing businesses in India is Gujarat Mineral Development Corporation Ltd. (GMDC). The largest merchant supplier of lignite in India is Gujarat Mineral Development Corporation Ltd. It produces bentonite, bauxite, ball clay, fluorspar, manganese ore, limestone, silica sand, and lignite. Panandharo, Tadkeshwar, Umarsar, Bhavnagar, Rajpardi, and Mata-No-Madh Lignite Mines are six of the lignite mines that GMDC runs. According to BSE statistics, the company has announced a final dividend of 572.50% for FY23, and the shares will begin trading ex-dividend on September 22, 2023.

Gujarat Mineral Development Corporation Dividend

"The Board of Directors of Gujarat Mineral Development Corporation Ltd, in its meeting held on 17th August, 2023, has decided to upwardly revise the dividend for FY 2022-23 to Rs. 11.45 per share having face value of Rs. 2.00 each, as against dividend of Rs. 9.10 recommended earlier on 30.05.2023. Accordingly the dividend for the FY 2022-23 stands revised as mentioned above," said the company in a stock exchange filing.

"For the purpose of determining entitlement of members to the dividend, the Register of members will remain closed from Monday, 25th September, 2023 to Saturday, 30th September, 2023 (both days inclusive.). If the final dividend, as recommended by the Board of Directors, is approved at the AGM, payment of such dividend subject to deduction of tax at source will be made on Thursday, 12th October, 2023 as under: i.

To all Beneficial Owners in respect of shares held in dematerialised form as per the data as may be made available by the National Securities Depository Limited ("NSDL") and the Central Depository Services (India) Limited ("CDSL"), collectively "Depositories", as of the close of business hours on Friday, 22nd September, 2023. ii. To all Members in respect of shares held in physical form after giving effect to valid transfer, transmission or transposition requests lodged with the Company as of the close of business hours on Friday, 22nd September, 2023, said Gujarat Mineral Development Corporation in a stock exchange filing.

Gujarat Mineral Development Corporation Financials

On a standalone basis, the company recorded revenue from operations of Rs 765.60 crore in the June 2023 quarter down 36.02% from Rs. 1,196.68 crore in the June 2022 quarter. In Q1FY24, it had a net profit of Rs. 215.53 crore, down 37.51% from Q1FY23's net profit of Rs. 344.90 crore, and its EBITDA was Rs. 307,84 crore, down 36.98% from Rs. 488.49 crore. The EPS of Gujarat Mineral Development Corporation dropped from Rs. 10.85 in June 2022 to Rs. 6.78 in June 2023.

In Q1FY24, the company's net income decreased by 31.28% YoY to Rs 826.76 Cr from Rs 1203.05 Cr in Q1FY23 on a consolidated basis. From Rs 344.94 Cr in the June 2022 quarter, its net profit decreased by 36.60% YoY to Rs 218.70 Cr in the June 2023 quarter. The firm reported an EPS of Rs. 6.88 for the fiscal year that ended on June 30, 2023, down from Rs. 10.85 for the fiscal year that ended on June 30, 2022.

Gujarat Mineral Development Corporation Share Price Target

Deven Mehata, Equity Research Analyst of Choice Broking said the stock GMDCLTD is currently trading at a robust level of 274.70, marking its 52-week high. This price level suggests strong investor confidence in the company's prospects. Notably, the stock has formed a sturdy support zone around 235, coinciding with the 20-day Exponential Moving Average (EMA), indicating a reliable price floor.

On the daily chart, GMDCLTD has formed a bullish candlestick pattern, and it has broken through a previous resistance level at 269. This breakout is a positive sign, as it suggests the potential for further upward momentum.

Furthermore, the stock is currently trading above all significant moving averages, reinforcing the bullish sentiment. The Relative Strength Index (RSI) stands comfortably at 74, indicating strength in the stock's trend.

For investors who have been holding the stock since lower levels, it is prudent to consider trailing their stop loss near the 235 support level to protect their gains. As for fresh entry opportunities, investors might consider buying on price dips, especially around the 250 mark.

Given the technical analysis, there is potential for GMDCLTD to move higher towards its all-time high levels of 320 and potentially even beyond.

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.