State-run PSU Stock: Rs 5.66 Dividend, 09/09 Record Date; Buy For Target Price?

Part of the government-run Gujarat State Petroleum Corporation (GSPC), Gujarat Gas Limited (GGL) is the largest city gas distribution (CGD) company in India in terms of sales volume, operating in 44 districts across 6 states (Gujarat, Maharashtra, Rajasthan, Haryana, Punjab, and Madhya Pradesh) as well as 1 union territory (Dadra & Nagar Haveli). Gujarat Gas Limited (GGL) holds an ISO certification for its Integrated QHSE (Quality, Health, Safety & Environment) Management System.

Gujarat Gas Dividend

"We are pleased to inform you that the Board of Directors of your Company at its Meeting held on 6th May, 2024, has recommended a Dividend of Rs. 5.66/- per Equity Share of face value of Rs. 2/- each for the Financial Year ended 31st March, 2024 and the said Dividend will be paid subject to approval of the Shareholders at the ensuing Annual General Meeting," said the company in a stock exchange filing.
For the purpose of the above, Monday, 09th September, 2024 has been fixed as the record date.

The Board of Directors said in a regulatory filing that the, "Dividend Payout Date if declared at the 12th Annual General Meeting scheduled to be held on 26th September, 2024. On or before Friday, 25th October, 2024 to the Members whose name appears on the Company's Register of Members as on the Record Date i.e. Monday, 09th September, 2024 as Beneficial owners as at the close of business hours on Monday, 09th September, 2024, as per the list to be furnished by the Depositories in respect of the shares held in electronic form and for physical shareholders after giving effect to all valid share transfer in physical form received as at the close of business hours on Monday, 09th September, 2024."

Gujarat Gas Q1 Results

Gujarat Gas's net profit climbed by 53.32% to Rs 329.78 crore in the quarter that ended in June 2024 compared to Rs 215.09 crore in the quarter that ended in June 2023 on a standalone basis. On a standalone basis, sales increased 17.69% to Rs 4450.30 crore in the quarter that ended in June 2024 compared to Rs 3781.51 crore in the same period last year.

Gujarat Gas's consolidated net profit increased by 53.14% to Rs 330.71 crore in Q1FY25 from Rs 215.95 crore in Q1FY24. On a consolidated basis, sales increased 17.69% to Rs 4450.30 crore in the quarter ended June 2024 from Rs 3781.51 crore in the same quarter of FY24.

Gujarat Gas Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "The current trading price of GUJGASLTD is Rs 600. The stock has recently shown signs of accumulation around the support level, accompanied by a significant increase in trading volume, which suggests a potential bullish reversal. If the price manages to close above Rs 607, it may have the potential to reach short-term targets of Rs 660. Immediate support is located at Rs 580, presenting potential buying opportunities on dips. The Relative Strength Index (RSI) is currently at 42 and trending upward, indicating increasing buying momentum."

" To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 560. This precaution will help protect your investment in the event of an unexpected market reversal. In summary, considering the technical analysis and current market conditions, GUJGASLTD appears to be an appealing buying opportunity for those targeting a price of Rs 660, provided that appropriate risk management measures are implemented," Mandar Bhojane added.

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.