Rs 2.50/Share Final Dividend: Record Date In Due Course; Buy The ITC Group Stock?

Gujarat Hotels has a market valuation of Rs 79 Cr as of today's closing session, making it a small-cap company in the consumer discretionary category. Incorporated in 1982, Gujarat Hotels Limited (GHL) is a subsidiary business of ITC Limited. Under the terms of an operating license agreement, ITC Limited runs the Welcome Hotel Vadodara in Vadodara, which is owned by GHL. At the meeting that took place today, April 18, 2024, the company's Board of Directors announced the financial results for the quarter that ended on March 31, 2024, as well as the final dividend. Gujarat Hotels' shares wrapped up 5.67% higher on Thursday at Rs 207.70 each on the BSE following the announcement.

Gujarat Hotels Dividend

The Board of Directors "Recommended, subject to declaration of the same by the members, Final Dividend of Rs 2.50 per equity share of Rs 10/- each for the financial year ended 31st March, 2024. The details with respect to date of the Annual General Meeting, record date for payment of dividend and the date of payment of such dividend will be advised in due course," said Gujarat Hotels in a stock exchange filing today.

Gujarat Hotels News

On 18th April, the Board of Directors of the company approved re-appointment of Mr. Mohan Swarup Bhatnagar as an Independent Director for another period of five years w.e.f. 28th June, 2024. His current term will expire on 27th June, 2024. They also approved the appointment of Ms. Sungita Sharma as an Independent Woman Director of the company for a period of five years with effect from 15th May, 2024, as per a regulatory filing.

Gujarat Hotels Financials

According to the firm, its net profit climbed to Rs 1.34 crore in the quarter that ended in March 2024 from Rs 1.24 crore in the quarter that ended in March 2023, which is a rise of 8.06%. Sales fell to Rs 1.08 crore in Q4FY24 from Rs 1.09 crore in Q4FY23, a 0.92% drop. Net profit for the full financial year increased by 11.06% to Rs 4.72 crore for March 2024 from Rs 4.25 crore in the fiscal year that ended in March 2023. In the year that ended in March 2024, sales dropped by 6.01% to Rs 3.44 crore from Rs 3.66 crore in the year prior that ended in March 2023.

Gujarat Hotels Share Price Target

"Gujarat Hotels Limited is a small-cap Indian company engaged in tourism and hospitality business. It is an associate of ITC Limited and owns the renowned WelcomHotel Vadodara. The company's financial standing and business fundamentals make it a lucrative option for traders and investors. In one year, the company has delivered a strong 39.30% return, demonstrating its growth potential. It has also offered a dividend of 1.02% which is nearly twice the sector's current dividend yield. Notably, the stock's current PE stands at 16.11 against the sector's 63.41, underscoring its lower valuation than its actual potential. As per my analysis, the stock's current momentum looks promising and we could witness an uptrend in its movement soon. I recommend investors explore this stock and tap into its earnings potential by entering the buying range of Rs.200 to 212. They may set a target for Rs.230-325, while closely following a stop loss of Rs. 180," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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