The shares of this small-cap Fertilisers & Chemicals Limited manufacturer fell up to 4.6 percent to Rs 660.50 a share after the company announced weak Q2 results followed by a share buyback.
At 12:25 p.m., Gujarat Narmada Valley Fert & Chem. Ltd shares were quoted at Rs 678.25 a share, down 2.04 percent from the previous close. The company has a market capitalization of Rs 10,542 crore.
The company board has approved the buyback of shares at a premium of 11.2% to the stock’s Wednesday close of Rs 692.4 apiece on the BSE for a buyback price of Rs 770 per share.
The Company has fixed November 24, 2023, as the Record Date to determine the entitlement and the names of the equity shareholders who shall be eligible to participate in the Buyback.
According to the company’s exchange filing.Gujarat Narmada Valley Fert & Chem. Ltd reported a 20 percent decline in revenue year on year, from Rs 2,587 crore in Q2FY23 to Rs 2,080 crore in Q2FY24. During the same period, net profit fell by 25 percent from Rs 237 crore to Rs 178 crore.
In comparison to the previous quarter, operational revenue increased by 26 percent from Rs 1,652 crore in Q1FY24 to Rs 2,080 crore in Q2FY24, Further net profit has risen by 109 percent from Rs 85 crore to Rs 178 crore.
The company has offered to buy back up to 84.78 lakh equity shares, representing 5.46 percent of the total paid-up capital. According to the company’s Exchange filing report.
During Q2 FY 23-24, the company commenced operation of its brownfield CNA-IV with an annual production capacity of 50,000 MT.
On a year-on-year Q2 basis company margins have come under pressure mainly due to erosion in net sales realisations practically across the chemical products portfolio.
Gujarat Narmada Valley Fert & Chem stock has gained 20 percent on a year-on-year-to-date basis and 14 percent in the past six months.
Gujarat Narmada Valley Fertilizer & Chemicals Ltd is a joint-sector enterprise promoted by the Government of Gujarat and the Gujarat State Fertilisers & Chemicals Ltd.(GSFC). Which is engaged in the manufacturing and marketing operations of single-stream ammonia-urea fertiliser complexes and chemicals.
Written by Omkar Chitnis
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