Dividend Stocks To Buy: Top Multibagger PSUs Likely To Declare Dividend In March

Two leading public sector undertakings are likely to recommend interim dividend and final dividend in March 2024. These two companies are Maharatna Oil India Ltd and Miniratna Bharat Dynamics Ltd. Last trading price of Oil India Ltd shares on BSE is Rs 592.50 apiece with intraday gain of 0.54% while last trading price of Bharat Dynamics shares on BSE is Rs 1847.35 apiece with intraday rally of 0.36%. Brokerage firm Motilal Oswal has assigned buy call to Oil India shares with target price of Rs 650 apiece. If you buy Oil India stock at last trading price of Rs 592.50 per share, you can fetch potential gain of 9.7%. On the other hand, ICICI Direct has assigned buy call to Bharat Dynamics stock with target price of Rs 2010 apiece. If you buy Bharat Dynamics shares at the current market price of Rs 1847.35, you can fetch potential return of 8.8%. Check details below:

1. Oil India Ltd To Consider Interim Dividend On March 8: As per the regulatory filing of the company dated February 28, 2024, "Notice is hereby given that a Board Meeting of the Company has been scheduled on Friday, 08th March, 2024, inter-alia to consider and declare Second Interim Dividend for Financial Year 2023-24, if any."
Oil India Ltd Shares Performance & Return: 52-week high price of Oil India shares on BSE is Rs 630.00 apiece and 52-week low price is Rs 240.65 apiece, respectively. The company has a market capitalisation of Rs 64,251.01 crore. Oil India shares gained 91% in last 3-months, soared 117% in last 6-months, zoomed 130% in last 1-year, surged 142% in last 2-years, and offered return of 365% in last 3-years. In last 5-years, the scrip gained 232%.

Motilal Oswal Assigns Buy Call: According to the analyst, "The stock currently trades at a P/E multiple of 8.5x FY25E EPS and 6.4x FY25E EV/EBITDA. We value the stock at 7x Dec'25E standalone adj. EPS and add investments to arrive at our target price of Rs 650." Oil India remains a strong conviction BUY with a 1.5x FY25E P/B (standalone) valuation. It is a unique play to benefit from the strong multi-year upcycle in both upstream and refining sectors, added the analyst. If you buy Oil India shares at last trading price of Rs 567.30 apiece, you can fetch potential return of 14.58%.

About: Oil India Limited (OIL) is a fully integrated Exploration & Production company in the upstream sector, with origin dating back to the glorious year (1889) of oil discovery in India. A Maharatna Company, OIL is a state-owned enterprise of the Government of India, under the administrative control of the Ministry of Petroleum and Natural Gas and is the second largest national oil and gas company in India.

2. Bharat Dynamics To Mull Interim Dividend: According to the BSE filing of the PSU dated March 1, 2024, "We wish to inform that a meeting of the Board of Directors of the Company is scheduled to be held on Friday, 15th March 2024 inter-alia to consider payment of Interim Dividend for the financial year 2023-24. The Company has fixed Tuesday, 26th March 2024 as the "Record Date" for the purpose of payment of Interim Dividend on Equity Shares for the Financial Year 2023-24, if declared by the Board."

Bharat Dynamics Stock Performance & Return: The 52-week high price of Bharat Dynamics shares on BSE is Rs 1984.40 apiece and 52-week low price is Rs 879.00 apiece, respectively. The company has a market capitalisation of Rs 33,858.46 crore. Bharat Dynamics shares soared 62% in last 6-months, rallied 95% in last 1-year, zoomed 298% in last 2-years, and offered gain of 382% in last 3-years. In last 5-years, the scrip soared 545%.

ICICI Direct Recommends Buy: According to the brokerage firm, "We believe BDL is strongly placed to benefit from increasing capital outlay for indigenised defence platforms like missiles, torpedoes & Counter measure dispensing systems. We estimate revenue, EBITDA and PAT to grow at 29.4%, 41.4% and 46.9% CAGR respectively over FY23-26E. Valuation at 27.3x P/E on FY26E basis looks attractive given strong growth ahead led by multiple sectoral tailwinds. We recommend BUY on BDL with target price of ₹ 2010 per share (based on 33x FY26E EPS)." If you buy Bharat Dynamics shares at the current market price of Rs 1847.35, you can fetch potential return of 8.8%.

Bharat Dynamics Ltd About: Headquartered in Hyderabad, Bharat Dynamics Limited (BDL), was incorporated on 16 July, 1970 as a Public Sector Undertaking under the Ministry of Defence, Government of India to be the manufacturing base for guided missile systems and allied equipment for the Indian Armed Forces.

Disclaimer:

The stocks have been picked from the brokerage report of ICICI Direct and Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.