Rs 11.45/Share Dividend: Mining Stock To Trade Ex-Dividend Tomorrow For 572.50%: Buy?

In the mining and metals industry, Gujarat Mineral Development Corporation Ltd. (GMDC) is a mid-cap corporation. The firm has announced a dividend of Rs 11.45 per share for FY23, and based on information from the BSE, the stock will begin trading ex-dividend tomorrow, 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 Gujarat Mineral Development Corporation Ltd. (GMDC) in a stock exchange filing.

Gujarat Mineral Development Corporation has announced an equity dividend of 572.50% at a face value of Rs 2 or Rs 11.45 per share, for the fiscal year ending March 2023. The dividend yield at the current share price of Rs 282.95 is 4.01%. The business has a solid track record of dividend declarations during the past five years. According to statistics from Trendlyne, Gujarat Mineral Development Corporation Ltd. has issued 24 dividends since September 6, 2000.

Gujarat Mineral Development Corporation Financials

The company's total income reached Rs. 827 crore in Q1 FY24 as against Rs. 1188 crore in Q4 FY23. Its revenue from operations was reported at Rs.766 crore down by 20% YoY as compared to Rs. 952 crore in Q4 FY23. The company's EBITDA was at Rs.307 crore in Q1 FY24 compared to Rs.637 crore in Q4 FY23 and its core EBITDA margin stood at 37%. The company said its Profit Before Tax (PBT) stood at Rs. 288 crore for Q1 FY24 as compared to Rs.616 crore in Q4FY23 and its PBT margin was 35%. Gujarat Mineral Development Corporation said its Profit After Tax (PAT) reached Rs. 216 crore in Q1 FY24 as against Rs. 451 crore in Q4FY23 and its PAT margin stood at 26% as per a stock exchange filing.

Gujarat Mineral Development Corporation Share Price Target

Kkunal Parar, Vice-President of Choice Broking said, "On a daily chart, the stock has already given a breakout of Flag formation which shows a further upside in the counter. Moreover, the stock has been trading above its 50 Days Moving Average which shows that the trend is positive only and further upside would be there. On a monthly chart, we have witnessed a strong breakout with above-average volume which indicates a strong up move in the counter which we can witness in upcoming months. A daily momentum indicator RSI's reading is at 64 and has strong support of its Upward Rising Trend line which points out that a positive breath would be there in the counter. Based on the above technical structure, we are expecting a good move in the counter upto the level of 365 while downside support comes at 235.00."

"GMDCLTD which has delivered 92% returns in just 1 year, has declared a flat dividend of ₹ 11.45 per share. Currently trading at 289. It is trading above almost 10% from its 20-day EMA. As per its past behaviour, it could test it averages again and then safe traders can initiate fresh longs in it. Those who are holding can do some averaging near the 255 to 265 range and hold it for a target of 300 to 450. Keep the Stop loss point at 225. Keep in mind its RSI is nearly 85 at weekly and 65 at daily time frame. So wait for the right time to initiate fresh buying in it", suggested VLA Ambala (SEBI Regd. RA).

Disclaimer

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