HPCL Vs BPCL Vs Oil India: Latest Bonus Issues Allotment, Which PSU Oil & Gas Stocks To Buy Ahead OF Budget?

PSU oil and gas stocks such as HPCL, BPCL and Oil India which recently allotted bonus issues, are trending on the Indian stock market. In the upcoming budget, the sector is looking for regulatory reforms that could cushion gas prices under GST. Besides Budget, upcoming Q1 results will also keep these stocks in the buzz.

Earlier, after BJP won in the 2024 Lok Sabha Elections, oil Minister Hardeep Singh Puri stated that the focus of the government will be on driving oil and gas exploration including the production, of green hydrogen, and further raising the consumption of gas in the country.

Accordingly, should you buy or sell or hold, HPCL, BPCL, and Oil India shares ahead of Budget 2024 and Q1?

HPCL:

Share Price: HPCL's share price traded at Rs 330.25 apiece, up nearly 1% on BSE with a market cap of Rs 70,271.34 crore. The stock's 52-week high and low is at Rs 396.66 apiece and Rs 159.58 apiece respectively. YTD and HPCL gained by nearly 24% on BSE.

Bonus Issue: HPCL turned ex-bonus on June 21 which is also the record date for the bonus issue in the ratio of 1:2.

On June 25, HPCL received board of directors approval for the allotment of 70,92,74,172 equity shares of Rs 10 each. HPCL said that the Bonus equity shares are allotted in the proportion of 1:2 i.e. one new equity Bonus share of Rs.10/- each for every Two existing paid-up equity shares of Rs.10/- each, to the eligible Members whose names appear in the register of Members/list of beneficial owners as on June 21, 2024, being the record date fixed for this purpose.

BUY/SELL HPCL Share: As per the Trendlyne data, the consensus recommendation from 30 analysts for Hindustan Petroleum Corporation Ltd. is HOLD. On the other hand, ahead of Q1, JM Financial has maintained SELL on HPCL for a lower target price of Rs 290 apiece from the CMP. JM is assuming a decline in auto fuel gross marketing margin to +INR 3.3/ltr in 1QFY25 (vs INR 4.5/ltr in 4QFY24.

BPCL:

Share Price: The stock price is also up marginally, trading at Rs 299.85 apiece on BSE with a market cap of Rs 1,30,089.00 crore. BPCL's 52-week high and low is at Rs 343.83 apiece and Rs 165.75 apiece respectively. YTD, BPCL stock is up by 33%.

Bonus Issue: While BPCL also turned ex-bonus on June 21, it fixed its record date on June 22 for its 1:1 bonus issue. 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.

BPCL's board approved the allotment of 216,92,52,744 equity shares of Rs.10 each as fully paid-up Bonus equity shares. It added the Bonus equity shares are allotted in the proportion of 1:1 i.e. one new equity Bonus share of Rs.10 for every existing paid-up equity share of Rs.10, to the eligible Members whose names appear in the register of Members/list of beneficial owners as on 22nd June 2024, being the record date fixed for this purpose.

BUY/SELL BPCL Share: As per Trendlyne data, the consensus recommendation from 30 analysts for Bharat Petroleum Corporation Ltd. is BUY. The 12-year target price is at Rs 316.93 apiece, hinting at a nearly 6% potential upside. However, ahead of Q1, JM Financial has maintained HOLD on BPCL with a much lower target price of Rs 280.

Oil India:

Share Price: The stock price traded at Rs 511.85 apiece, up by 2.4% on BSE with a market cap of Rs 83,257.92 crore. The stock's 52-week high and low are at Rs 517 apiece and Rs 168.65 apiece respectively. YTD, Oil India share surged by 98.04% on BSE.

Bonus Issue: The company turned ex-bonus on July 2 for its bonus issue ratio is of 1:2. Oil India has announced the allotment of 54,22,02.597 equity shares of Rs.10/- each as fully paid-up Bonus Equity Shares on Thursday, July 4, 2024 in the proportion of 1:2 i.e. 1 (One) Bonus Equity Share of Rs 10 each for every 2 (Two) existing Equity Shares of Rs.10/- each held, to the eligible Members whose names appear in the Register of Members/list of beneficial owners as on Tuesday, July 2, 2024.

BUY/SELL Oil India Share Price: As per Trendlyne data, the consensus recommendation from 16 analysts for Oil India Ltd. is BUY. JM Financial has set a target price of Rs 555 with BUY recommendations. JM Financial expects Oil India's 1QFY25 EBITDA to be marginally higher QoQ. While Oil India's gas realisations are also expected to be steady QoQ with domestic APM gas realisation being capped at USD 6.5/MMBtu.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, 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.