Gujarat Narmada Valley Q4 earnings: Shares plunge 10%; Rs 30 dividend announced

Shares of Gujarat Narmada Valley Fertilizers & Chemicals Ltd slipped 10% today after the firm reported a 48% fall in Q4 net profit. Gujarat Narmada Valley stock fell 9.95% to Rs 589.5 against the previous close of Rs 654.65 on BSE. Market cap of the firm fell to Rs 9282.39 crore. Total 2.60 lakh shares of the firm changed hands amounting to a turnover of Rs 16.20 crore. Later the stock closed 8.05% lower at Rs 601.95 on BSE. The stock has fallen after three days. The stock hit a 52-week high of Rs 148.70 on November 28, 2022 and fell to a 52-week low of Rs 87.45 on June 20, 2022.

The small cap share has gained 7.48 per cent in a year and fallen 6.36 per cent this year.

In terms of technicals, the relative strength index (RSI) of Gujarat Narmada Valley stands at 78.4, signaling the stock is in the overbought zone. The stock has a one-year beta of 1.4, indicating very high volatility during the period. Gujarat Narmada Valley shares are trading higher than the 20 day, 50 day and 100 day moving averages but lower than 5 day and 200 day moving averages.

Net profit fell to Rs 334 crore in the last quarter against Rs 643 crore in the corresponding quarter of the previous fiscal. Revenue slipped 18% to Rs 2271 crore in Q4 from Rs 2772 crore a year earlier.

For the last fiscal, sales zoomed to Rs 10,227 crore in the last fiscal against net profit of Rs 8642 crore in the previous fiscal. However, profit fell 14% to Rs 1710 crore in FY23 against Rs 1472 crore in the previous fiscal.

The Board of Directors recommended a dividend of Rs 30 per equity share of Rs 10 each (i.e. 300%) for the year ended March 31 , 2023, subject to the approval of shareholders in the ensuing Annual General Meeting.

Gujarat Narmada Valley is engaged in manufacturing and selling fertilizers, such as Urea and Nitrophosphate, under the NARMADA brand.

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