HPCL vs BPCL: Which Maharatna PSU Stock To Buy For Bonus Shares In 1:2 & 1:1 Ratio?

The two leading oil and gas firms in India, Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL), are Government of India Enterprises having Maharatna Status. Since these PSU stocks will trade ex-bonus on June 21, they will be closely watched this week. Apart from bonus shares HPCL and BPCL are among the highly popular dividend-paying stocks among investors currently trading at a dividend yield of 5.87% and 6.7% respectively.

HPCL Bonus Shares

The Board of Directors of HPCL have declared 1:2 bonus shares and for the purpose of the same June 21, 2024 as the record date. 08-07-2024 is the estimated date by which such bonus shares would be credited/dispatched.

The pre-bonus issue share capital is Rs.1,418.55 Crore while the post-bonus issue share capital is Rs.2,127.82 Crore.

Rs.709.27 Crore is the free reserves and/ or share premium required for implementing the bonus issue while Rs.38,006.98 Crore as of March 31, 2024 was the free reserves and/ or share premium available for capitalization.

HPCL Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "HINDPETRO is currently trading at 535 levels, indicating a solid technical foundation. The stock has strong support near 513 levels, aligning closely with its medium-term (50 Day) EMA. This support level is crucial, providing a safety net for the stock's current price and a potential entry point for investors. On the higher side, HINDPETRO faces significant resistance near 540 levels. A successful close above this resistance could trigger a sharp upward movement, with the next resistance levels at 565 and 580. This potential breakout is an important indicator for traders looking for momentum-driven gains."

"Currently, the stock is trading above its short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMA levels. This alignment across multiple time frames signifies underlying strength and a positive trend. Investors who have been holding the stock from lower levels should consider maintaining their positions, using a trailing stop loss set at 513 levels. This approach balances the potential for upward gains while managing downside risk. With targets set at 565 and 580 levels, HINDPETRO presents a compelling opportunity for continued growth," the analyst commented.

BPCL Bonus Shares

The Board of Directors of BPCL have proposed 1:1 bonus shares i.e. 1 new fully paid-up bonus equity share of Rs. 10/- each will be credited for every 1 existing fully paid-up equity share of Rs. 10/- to the shareholders whose name will appear on record book as on record date 22nd June 2024.

A total of 2,16,92,52,744 equity shares having a face value of Rs. 10/- each are proposed to be issued as a part of bonus shares. The pre-bonus share capital is Rs 2,169.25 Cr while the post-bonus issue share capital is Rs 4,338.50 Cr.

Rs. 2,169.25 Crores is the free reserves and/ or share premium required for implementing the bonus issue. The balance in the Free Reserves and securities premium account as of 31st March 2024 was Rs. 69,797.21 Crore, according to BPCL.

8th July 2024 is the estimated date by which such bonus shares would be credited/dispatched.

BPCL Share Price Target

Deven Mehata said, "BPCL's current stock analysis suggests a favourable outlook. It's presently trading at 619.35 levels and has recently rebounded from a robust support zone spanning 594 levels. This rebound showcases notable buying interest near the support level, solidifying it as a key support level. Furthermore, a neutral candlestick pattern on the daily charts, supported by trading volumes, indicates a positive shift in market sentiment. This pattern implies a bullish sentiment to a more optimistic one, which can result in an upward trajectory for the stock's price."

"Notably, there's a minor resistance level observed around 640 levels. Breaking above this resistance could pave the way for the stock to move towards a target of 685 levels or potentially even higher. Based on this analysis, one may consider buying BPCL at the CMP of 619.35, setting a stop loss at 594, and aiming for a target of 685 and above," the analyst added.

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.