5.80% Dividend Yield: Maharatna PSU Stock To Consider Interim Dividend Tomorrow

The largest crude oil and natural gas company in India, Oil and Natural Gas Corporation Ltd. (ONGC), holds the Maharatna title and accounts for around 71% of the country's domestic output. The company is going to consider and declare an interim dividend for FY24 tomorrow on 10th November.

"This is in continuation of our communication dated 30.10.2023 w.r.t. intimation of Board Meeting scheduled to be held on Friday, the 10th November, 2023 wherein, it was informed that the Board may inter-alia, consider declaration of Interim Dividend, if any, for the FY 2023-24. In terms of Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is hereby informed that Tuesday, the 21st November, 2023 has been fixed as 'Record Date' for determining eligibility of members for payment of Interim Dividend, if any, declared by the Board of Directors," said ONGC in a stock exchange filing.

A 225.00% equity dividend, or Rs 11.25 per share, at face value of Rs 5 has been declared by Oil and Natural Gas Corporation for the fiscal year ended in March 2023. The dividend yield at the current share price of Rs 194 is 5.80%. The business has a strong dividend history and has paid out dividends on a regular basis over the previous five years. Based on information from Trendlyne, Oil and Natural Gas Corporation Ltd. has issued fifty-five dividends since August 29, 2000.

"Within the oil & gas sector, OMCs would see large y-o-y earnings growth as Q2FY23 had losses due to auto fuel under-recoveries and inventory loss. However, OMCs PAT would decline q-o-q due to sharp jump in crude oil price. Gas utilities would see continued volume recovery while CGDs margins are expected to contract on q-o-q basis. Upstream PSUs would post healthy earnings growth," said the brokerage company Sharekhan on the outlook of key expectations from the oil and gas sector.

By giving a neutral view on the sector, the brokerage said "OMCs are expected to post q-o-q earnings decline due to auto fuel under-recoveries given a rise in petroleum product prices. Strength in GRMs and inventory gains would provide some relief.

Upstream PSUs to benefit from modest volume growth and slightly better net oil realisation. Gas utilities would see the benefit of continued volume recovery and we expect strong earnings growth of 39%/42% q-o-q for GAIL/ GSPL. City-gas distribution companies CGDs (IGL/MGL) would see margins decline, while gas sales volume growth to stay decent. Recent cap on APM gas prices and soft spot LNG prices bode well for an improvement in volume/margin for CGDs. Although valuation of OMCs remains attractive but the recent surge in crude oil prices to ~$85/bbl is a concern for earnings of OMCs in H2FY24."

On Thursday, the shares of ONGC were trading on the BSE at Rs 194.25 apiece. The scrip hit a 52-week-high of Rs 197.95 on (07/11/2023) and a 52-week-low of Rs 132.95 on (22/11/2022).

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