Rs 25/Share Dividend: Hinduja Group Stock To Turn Ex-Dividend This Week For 1250% Payout

Gulf Oil Lubricants India Ltd is a small-cap company that operates in the energy sector. Gulf Oil India is India's leading lubricant manufacturer and marketer. Gulf Oil Lubricants India Ltd (GOLIL), a subsidiary of the Hinduja Group, is a well-known participant in the Indian lubricants market. The company has declared a final dividend of 1250% in FY23 and the stock is going to trade ex-dividend on 25th August 2023. Due to the company's T+1 settlement type the record date is also falling on the same day on Friday.

Gulf Oil Lubricants India Dividend

The Board of Directors of the company have recommended a dividend of Rs. 25/- per equity share of the face value of Rs. 2/- each (1250%) for the financial year ended 31 March 2023. "Record date as Friday, August 25, 2023 for the purpose of determining the entitlement of Members to dividend payment. The dividend on equity shares for the financial year ended March 31, 2023, as recommended by the Board of Directors on May 18, 2023 and if approved and declared at the ensuing 15th AGM, will be paid/dispatched by the Company in permitted modes on or after Wednesday, September 6, 2023 within the stipulated timelines to those Shareholders or their mandates," said Gulf Oil Lubricants India in a stock exchange filing.

Gulf Oil Lubricants India has announced an equity dividend of 1250.00% at a face value of Rs 2 equaling Rs 25 per share for the fiscal year ended March 2023. At the current share price of Rs 619.50, this amounts to a dividend yield of 4.04%. The firm has a solid dividend track record, having distributed dividends on a steady basis over the previous five years. According to Trendlyne, Gulf Oil Lubricants India Ltd. has issued 16 dividends since October 9, 2014.

Gulf Oil Lubricants India Financials

During the quarter ended June 30, 2023, the company has achieved net revenue of Rs. 811.71 crores as against Rs 706.45 crores in June 2022 quarter recording a jump of 14.90% YoY. During Q1FY24 the company recorded a net profit Rs. 68.30 crores as against Rs. 55.33 crores in Q1FY23, up by 23.42% YoY. Its EBITDA reached Rs 92.78 Cr in Q1FY24 up by 9.12% YoY from Rs 85.03 Cr in Q1FY23.

Commenting on the performance, Mr. Ravi Chawla, Managing Director & CEO, Gulf Oil Lubricants India Ltd., said, "During June'23 quarter, the Company witnessed a robust revenue growth of 15% and PATgrowth of 23% on the back of sequential margin improvements and easing of forex volatility, which paved the way for higher brand investments by leveraging our brand assets during IPL season."

"While few segments are still facing softer demand conditions, B2B continues to achieve double digit growth for us. Our distribution reach is continuously on the rise and that creates a strong foundation for our market share gain strategy. We will continue our focus on margin management and 2-3x market growth in terms of volumes and revenues on a full year basis. Our robust cash generations enable us to look for opportunities in the emerging fields of EVs and other adjacencies and exploring areas where Gulf can play a key role basis synergies with our current strengths and future strategies".

Gulf Oil Lubricants India Share Price Target

On Tuesday, the shares of Gulf Oil Lubricants India closed on the BSE at Rs 619.50 apiece up by 0.21% over the previous close of Rs 618.20. The stock made a 52-week-high of Rs 624.95 on (17/08/2023) and a 52-week-low of Rs 390.00 on (03/04/2023).

Commenting on the valuation of Gulf Oil Lubricants India Om Mehra, research analyst at Choice Broking, said, "GULFOILLUB is currently trading at 622 after lasting in a consolidation range. Simultaneously from the weekly chart it has buoyant support at around 520-540 levels. Stock is trading higher than 20 and 50 day moving averages. RSI is currently indicating recovery from lower levels and is skewed on the positive side. The Fibonacci retrenchment of 50 percent ties with the 600 level indicates affirmative support as well. Volume participation is gradually increasing in the daily chart confirms the positive price action."

"Indicator as Bollinger bands indicates the stock is trading above the middle band as buyers are fascinated at current market price. In comparison with BSE 500, GULFOILLUB Ltd has outperformed benchmark indices Sensex with 25 percent gain in the last one month as well. Based on the above parameters we remain optimistic for the stock as it may potentially deliver decent returns in the short to medium term," said Om Mehra.

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.