Maharatna PSU oil and gas companies, HPCL and BPCL turned ex-bonus last week for their bonus issues in the ratio of 1:2 and 1:1 respectively. Moving on, both the PSUs will further focus on their hefty dividend rewards. YTD, HPCL stock is up by over 28%, and BPCL shares have zoomed by over 36%. Both the stocks have adjusted to their bonus issues.
HPCL:
Last week, on June 21, HPCL's share price ended at Rs 342.15 apiece, down by 2.03% on BSE with a market cap of Rs 72,803.45 crore. The stock's 52-week high and low is at Rs 396.66 apiece and Rs 159.58 apiece respectively.
On June 21, HPCL turned ex-bonus for bonus shares in the ratio of 1:2, meaning, 1 free share on every 2 existing shares. The record date was also June 21, 2024. The bonus shares are carried from the company's free reserves of Rs 38,006.98 Crore as of March 31, 2024. The required free reserve for bonus issue is Rs709.27 Crore.
With the bonus issue record date done, HPCL will now be in focus for its dividend payout.
HPCL has fixed August 9, 2024, as the record date for its final dividend of Rs 16.50 per share with a face value of Rs 10 each for FY24. The same would be paid within 30 days from the date of declaration at the ensuing AGM. The final equity dividend is in addition to the Interim Dividend(s) of Rs. 15.00 per share (pre-bonus) paid for the financial year 2023-24.
HPCL is one of the largest integrated Public Sector Undertaking, engaged in the business of refining Crude Oil and marketing of various petroleum products like Asphalt, Diesel, Kerosene, LPG, Lube Oils, Petrol, branded products like ATF (Aviation Turbine Fuel), Power, Turbojet, Naphtha, throughout India and at select foreign countries. Some of these products are exported to other countries.
At the latest, Antique Stock Broking has recommended BUY with a target price of Rs 607 on HPCL. In FY25, the brokerage expects the return on equity of HPCL to come around 19.3%. While the PE ratio is seen at 8.8x The company's net profit is estimated at Rs 83.2 billion in FY25.
BPCL:
On June 21, 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.
BPCL stock turned ex-bonus on June 21 for its bonus issue of 1:1 whose record date was at June 22. The ratio of 1:1 means that 1 existing equity shareholder of BPCL will receive 1 free bonus share. The face value is Rs 10 each.
The upcoming bonus issue is after seven years of gap by BPCL. Earlier, BPCL rewarded a bonus issue of 1:2 in July 2017, following more bonuses in the ratio of 1:1 each which was rewarded in July 2016, July 2012, and December 2000.
Going forward, BPCL has declared a final dividend of Rs 21 per share for FY24, having a face value of Rs 10 each (pre-bonus), which translates into a final dividend of Rs.10.5/- per equity share of the face value of Rs.10/- per equity share) (post-bonus). The final dividend would be paid within 30 days from the date of its declaration at the AGM. The Record Date for the final dividend will be intimated separately.
Also, this will be the highest dividend payout by BPCL in three years. In 2021, the company delivered dividends up to Rs 95.5 per share.
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.
Currently, Antique Stock Broking has suggested BUY with a target price of Rs 770.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or 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.
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