Rs 5/Share Dividend: PSU Gas Stock Soars As Net Profit Zooms 22%, Buy Or Sell?

Board of Directors of leading public sector undertaking Gujarat State Petronet Ltd (GSPL) today declared a jump of 22.2% year-on-year (YoY) in its net profit to Rs 663.1 for the quarter ended March 31, 2024 as against the net profit of Rs 542.8 crore in the corresponding quarter of last year. The PSU recommended a dividend of Rs 5.00 per equity share of Rs 10/- each for FY 2023-24.

Last trading price of Gujarat State Petronet share on BSE is Rs 293.45 per share with intraday gain of 1.00%. Gujarat State Petronet shares declined 27% YTD and gained 6% in last 6-months. Its market capitalisation is Rs 16,556.78 crore. More details below:

Gujarat State Petronet Recommends Dividend: The BSE filing of the PSU stated, "We inform you that the Board of Directors of the Company at its Meeting held today i.e. 08th May, 2024, has recommended the Dividend of Rs. 5.00 per Equity Share of Rs. 10/- each (i.e. @50%) for the Financial Year 2023-24."

Gujarat State Petronet Q4: The PSU's revenue from operations soared 5.9% to Rs 4,522.2 crore as compared to Rs 4,270.1 crore in the similar period of last year. Its EBITDA surged 12.2% to Rs 959.8 crore for Q4 of current fiscal as against Rs 855.2 crore in year-ago period. EBITDA margin arrived at 21.12% for the quarter under review as against 20% in the similar period in the preceding fiscal.

Gujarat State Petronet Shares Performance & Return: The 52-week high price of Gujarat State Petronet shares on BSE is Rs 407.30 per share (as on 08/02/2024) and 52-week low price is Rs 254.75 per share (as on 01/11/2023), respectively. Gujarat State Petronet shares declined 22% in last 1-month, soared 6% in last 1-year, rallied 14% in last 2-years, and zoomed 67% in last 5-years.

Brokerages Opinion On GSPL: Earlier this year Petroleum and Natural Gas Regulatory Board (PNGRB) introduced new tariff order for Gujarat State Petronet's high-pressure pipeline which witnessed a sharp slash of 46.8% from the existing tariff to Rs 18.1 per million British thermal units (mmbtu). New tariff has seen a 2-year delay and became effective from May 1, 2024.

International brokerage firms namely CLSA and Citi decided to downgrade GSPL to 'sell' with target price of Rs 330 and 295, respectively. Meanwhile, Nomura remained upbeat of GSPL share and gave buy call with a revised target price of Rs 320 on the stock.

GSPL Dividend History: Gujarat State Petronet Ltd announced 18 dividends since September 15, 2006. In last 12 months, Gujarat State Petronet declared an equity dividend of Rs 5.00 per share. At the current share price of Rs 293.45, Gujarat State Petronet Ltd offers a dividend yield of 1.70%.

About: GSPL, a GSPC Group company is a pioneer in developing energy transportation infrastructure and connecting natural gas supply sources including LNG terminals to growing markets. GSPL is continuously expanding its pipeline network currently in Gujarat to reach the demand centres by laying gas pipeline network. The company has developed requisite expertise and confidence with proven project management competencies, according to its Linkedin page.

Disclaimer: The stock has been picked from the brokerage report of Citi, CLSA, and Nomura. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.