1:1 Bonus Shares Record Date On June 22: Maharatna PSU Oil & Gas Stock BPCL Turned Ex-Bonus: Short-Term Target

Oil marketing company, Bharat Petroleum Corporation (BPCL) with a Maharatna status, turned ex-bonus on June 21 ahead of its 1:1 bonus issue record date of June 22. On the day of ex-bonus, BPCL's share price adjusted and tumbled by nearly 2% on BSE. For the short term, the analyst expects BPCL's share price to range from Rs 600 to Rs 675. YTD, BPCL stock has given 39% returns on the exchange.

On Friday, BPCL share price ended at Rs 307.80 apiece, down by 1.71% on BSE with market cap. The stock's 52-week high and low are at Rs 343.83 apiece and Rs 165.75 apiece respectively. These levels have appeared after adjusting to the bonus issue ratio.

In the trading week that ended on June 21, BPCL stock gained a little over 1%. YTD, the stock is up by 39%, while in a year, the stock zoomed by a whopping 68%.

BPCL Bonus Issue:

The company turned ex-bonus for its bonus issue of a 1:1 ratio. This would mean that BPCL will distribute 1 free bonus share on 1 existing share having a face value of Rs 10 each. The record date is fixed on Saturday, 22nd June 2024 as Record date to determine the eligibility of shareholders to receive bonus shares.

However, since June 22 falls on the weekend holidays hence market will be closed for trading. Accordingly, eligible shareholders will be those who hold BPCL stock in their demat accounts as of June 21, 2024,

BPCL Stock Analysis:

Jigar S Patel, Research Analyst at Anand Rathi told GoodReturns.In that "BPCL's stock currently has a support level at Rs 610, which acts as a price floor where sufficient buying interest exists to prevent the stock from falling further. Conversely, it faces resistance at Rs 635, which acts as a price ceiling due to selling pressure that hinders the stock from rising above this level."

Further, Patel said, "If the stock manages to decisively close above the Rs 635 resistance level, it could signal a bullish breakout, potentially driving the stock price up to Rs 670, the next anticipated resistance or target level. For the short-term, BPCL's stock is expected to trade within a range of Rs 600 to Rs 675."

BPCL, a Maharatna PSU, aims to efficiently meet the energy needs of our nation with a combined refining capacity of over 40 MMT through refineries in Mumbai, Kochi, Numaligarh and Bina, which are strategically located.

Also, as per Trendlyne data, the consensus recommendation from 31 analysts for Bharat Petroleum Corporation Ltd. is BUY. However, EPS is expected to reduce by 46.2% in FY25.

Some of the key fundamentals on BPCL as per Trendlyne data are that the stock is up 65.18% and outperformed its sector by 21.8% in the past year. Further, it has Debt to debt-to-equity ratio of 0.6 is less than 1 and is healthy, which implies that its assets are financed mainly through equity. Additionally, the Price to Earning Ratio is 2.48, lower than its sector PE ratio of 22.03. Moreover, Return on Equity(ROE) for the last financial year was 35.51%, more than 20% in the last financial year, indicating an efficient use of shareholder's capital to generate profit.

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.