4.90% Dividend Yield: Maharatna Stock Declares Rs 21/Share Dividend; Buy?

In addition to being a Fortune 500 oil refining, exploration, and marketing company, Bharat Petroleum Corporation Ltd. (BPCL) is a Maharatna public sector undertaking oil and gas company in India. The company today announced an interim dividend for FY24, and for the same purpose, a record date has also been finalised. Following this announcement, BPCL's shares climbed by 1.12% intraday on Wednesday, closing at Rs 429.25 during afternoon business.

BPCL Dividend

"This is to inform you that the Board of Directors at its meeting held on 29th November 2023 has declared an Interim Dividend of Rs 21/- per equity share of face value Rs 10/- each i.e. 210% for the financial year 2023-24. Further, the Board of Directors has fixed Tuesday, 12th December 2023 as Record date to determine the eligibility of the shareholders to receive the said Interim Dividend. It may kindly be noted that the above dividend would be paid or the warrant in respect thereof would be posted on or before 28th December 2023," said BPCL in a stock exchange filing.

Based on the above-mentioned dividend, BPCL is trading at a dividend yield of 4.90% at the current market price of Rs 429.25 apiece.

BPCL Financials

For the second quarter that ended on September 30, 2023, the firm announced a consolidated net profit of Rs 8,501.2 crore. According to a regulatory filing, the company reported a net loss of Rs 304 crore for the same period in the previous year. According to the BPCL, the average gross refining margin (GRM) for the half-year that ended on September 30, 2023, was $15.42 per barrel, down from $22.30 per barrel during the same time the previous year.

For the quarter ended in July-September 2023, BPCL recorded revenue from operations of Rs 1,16,594 crore, compared to Rs 1,28,333 crore in the corresponding period the year before. EBITDA margin for the firm in Q2 FY 23-24 was 11.73 per cent, compared to 1.55 per cent in Q2 FY 22-23. The company's EBITDA for Q2 FY 23-24 is Rs 13,679.21 crore, compared to Rs 1,991.41 crore in Q2 FY 22-23.

BPCL Share Price Target

Deven Mehata-Equity Research Analyst at Choice Broking said, "BPCL's current stock analysis indeed points towards a favourable outlook. The stock is trading at 52-week high levels of 427 and has demonstrated a consistent upward trend over the past 5 weeks. This indicates positive momentum in the stock. The presence of a strong support level around 395, in close proximity to the 20-Day Exponential Moving Average (EMA), adds to the bullish sentiment and provides a potential entry point. Furthermore, the stock is trading above all important moving averages, reinforcing the overall strength of its trend."

"However, it's worth noting that the Momentum indicator RSI has reached the overbought zone of 80 on the daily chart. This signals a potential overextension in the short term. As a result, short-term traders holding long positions are advised to consider booking partial profits. For those considering fresh buying, a prudent strategy would be to wait for dips in the stock. Accumulating near 410 levels is suggested, with a target range of 450-470 levels. To manage risk, it's recommended to implement a strict stop loss at 395 levels," the analyst further added.

Disclaimer

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