CL Educate and Zydus Lifesciences Ltd have announced their share buyback. The two leading companies have also announced their Q4 results. Let us find more in detail below:
What is buy back of shares? It is a scenario wherein a company decides to buy back its own shares from the existing shareholders and normally at higher price than the market price. When the company buys back, its number of shares outstanding in the market comes down. A buyback helps companies to invest in themselves. When it occurs, the number of shares outstanding in the market reduces and the proportion of shares the company owns rises. There are various reasons for buy-back. It can boost earnings per share of the company. It can prevent unwanted takeover bids and improves return on capital, return on net worth, and boost the long-term shareholder value. Check these two stocks that have announced buyback:
1. CL Educate
The Board of CL Educate has approved a proposal for the company to buyback its fully-paid up equity shares of face value of Rs 5/each from equity shareholders of the company (except promoters, promoters group, and those in control of the company) through open market price not exceeding Rs 170. Earlier, CL Educate held a meeting on May 19 where Board of Directors of the company to consider the proposal of company's buyback plan of its own fully paid-up equity shares as per Securities and Exchange Board of India Regulations and other applicable laws. CL Educate's share price today on NSE was recorded at Rs 123.25 with a loss of 4.97%.
About CL Educate: CL Educate Ltd mainly concentrates on the vast sections of educations and serves the learners from multiple age-groups. It is equipped with a team of highly educated professional that may include IIT AND IIM alumni. The company has played a vital role in shaping the careers and lives of several students in more than 25 years of its existence. It was founded in 1996 and headquartered in India.
CL Educate Q4 Result: It has reported a total income of Rs 56.8079 crore for the period ended March 31, 2022 while it was recorded at Rs 53.4107 crore in the same quarter last financial year.
2. Zydus Lifesciences Ltd
It has announced its share buyback not beyond 1,15,38,461 shares or in other words 1.13% full paid up equity shares of the company. The company has intimated the BSE about its decision of BuyBack of shares. The record date of Zydus Lifesciences' share buyback has been fixed for June 2, 2022 and buyback is to be done at the share price of Rs 650 apiece. Meanwhile, the share price of Zydus Lifesciences remained at Rs 357.85 with a gain of 5.64%.
About Zydus Lifesciences: Previously the company was known as Cadila Healthcare Limited. It is a leading multinational pharmaceutical company located in Ahmedabad. It is involved in the production of generic drugs. It has been ranked 100th in the Fortune India 500 list released in the year 2020.
Zydus Lifesciences Q4 Results: The Q4 result of the pharmaceuticals company has been reported on Friday and it registered a dip of 41.47% in its consolidated net profit at Rs 397.4 crore in the 4th quarter that ended in March as a result of increased expenses and one-off inventory-linked provisions. Earlier, the company has reported a consolidated net profit of Rs 679 crore in the similar quarter last financial year.
CL Educate: Therefore, if you buy CL Educate at the current share price of 123.3 and then tender it, you can get a return of 38%.
Zydus Lifesciences Ltd: If you buy Zydus Lifesciences at the current share price of 357.85 and then tender it, you can get a return of 81.64.