This PSU Stock Declared Record Dividend In 2022: Key Facts

India's leading natural gas company GAIL (India) Ltd began as a Gas Transmission Company in the late eighties and since then it has grown organically. It has built a massive network of natural gas pipeline cover more than 11,000 km, two LPG Pipelines covering over 2000 km, six gas processing plants for LPG production, and other liquid hydrocarbons, etc. The company declared record dividend payout for financial year 2022. Given below are the details of its dividend announcement:

1. GAIL Announcement of Final Dividend

The board of directors of GAIL announced an equity dividend on May 27, 2022. According to the company's BSE filing, "The Board of Directors in its meeting held on 27th May 2022 recommended the final dividend of Rs 1.00 per equity share having face value of '{ 10 each for FY 2021-22, subject to approval by the members of the Company. This is in addition to the interim dividend of Rs 9.00 per equity share paid during the year by the company."

Meanwhile, for the current fiscal year ending March 31, 2022, the company declared an interim dividend of 50% amounting to Rs 5 per share and its record date was March 22, 2022. According to company's statement, the total dividend payout was Rs 2,220.19 crore. The PTI report added that for the current fiscal 2021-22, GAIL has already declared an interim dividend of ₹4 per share to its shareholders in December 2021. The two interim dividends total to ₹9 per equity share (90 per cent on the paid-up equity share capital).

Total dividend payout is ₹ 3,996.35 crore.

2. GAIL Dividend History

GAIL has a great dividend history and regularly declared dividend for the last 5 years without fail. If the current share price of that stock Rs 136.10 is taken into consideration, the dividend yield is turning out to be 7.37% per share.

3. GAIL Stock Outlook And Q4 Results

The current share price of the stock is Rs 136.10 with 52-week high at Rs 173.50 apiece and 52-week low at Rs 125.20 apiece, respectively. The PE is 4.93 which is lesser than sector PE of 5.27. The EPS is 27.60. The market capitalization is 60,411 crore. The stock has given a negative return of 9.12% and again a negative return of 1.29%. It is company with strong financials. Company's annual revenue growth of 60.61% outperformed its 3-year CAGR of 6.6%. Meanwhile, leading brokerage firms have already given a buy rating for the stock of GAIL.

Gail Q4 Results: It reported a surge of 40.6% in its standalone net profit at Rs 2683.11 crore for Q4 ended March 31, 2022 as margins on natural gas sales spiked.

4. Sandeep Kumar Set To Become New Chairman Of GAIL

In latest development, Sandeep Kumar has been chosen to lead GAIL (India) Ltd. Gupta has been chosen for the position of chairman and managing director of GAIL and he will replace Manoj Jain who is slated to retire on August 31.