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Dividend stock: Gujarat State Fertilizers & Chemicals (GSFC) will be in focus on stock exchanges tomorrow as it will turn ex-dividend ahead of the record date. Eligible shareholders will receive a 125% dividend for the financial year FY22. GSFC is a multi-bagger as the stock has skyrocketed nearly 2.5 folds. Investors' wealth has more than doubled in stock from the pandemic levels in 2020.
GSFC will pay a dividend of ₹2.50 per equity share having a face value of ₹2 each (125%) for the financial year FY22. The company had fixed September 13 as the record date for determining eligible shareholders for the dividend.
The ex-dividend date for GSFC is on September 9.
It needs to be noted that when a company earns profit they share a portion of the surplus with shareholders who hold a certain proportion of the company's stocks and that is called a "dividend". Meanwhile, the eligible shareholders for the dividend are those whose name appears in the register of the company on the record date.
Notably, investors who buy the stock on the ex-dividend date or later will not be eligible for dividends announced for a particular fiscal by the company.
Post-AGM, the company will pay the dividend on or after October 3, 2022. The annual general meeting (AGM) is scheduled on September 27.
On BSE, GSFC shares closed at ₹157.25 apiece flat compared to the previous close. The shares have touched an intraday high and low of ₹158.40 apiece and ₹156.50 apiece respectively.
The company has a market valuation of ₹6,266.06 crore.
So far, in the current year, the shares have climbed by at least 29.5%. While in a year, the shares have advanced by nearly 53%. GSFC shares were around ₹103 apiece on September 8 last year.
Notably, GSFC shares have skyrocketed by nearly 149% or 2.5 times in two years. The shares were around ₹63.2 apiece on September 8, 2020.
The company has announced its financial performance for the quarter ending June 30, 2022 (Q1FY23).
In Q1FY23, the company registered a consolidated net profit of ₹345.81 crore --- 2.5 folds higher than the profit of ₹136.11 crore recorded in Q1FY22. Revenue from operations stood at ₹3,018.15 crore in Q1FY23 against ₹1,850.91 crore in the same period last year.