1:2 Bonus Share, Rs 2.50 Dividend: Multibagger Oil PSU Falls 21.05% In 30-Days, PL Gives Buy Call

Oil India Ltd shares price witnessed steep decline of 21.05% in last 1-month span and slipped 3.93% in trade today on BSE. Current market price of Oil India shares on BSE is Rs 555.60 per share. Shares of oil and gas sector registered decline in last few days due to sharp fall in crude oil prices. Recently, there was a downward revision in world oil demand forecasts by OPEC with significant drop in demand from China. Meanwhile, Oil India shares declined 27.59% from 52-week high price of 767.30 per share that it hit on August 30, 2024. Oil India has a market capitalisation of Rs 90,374.33 crore. Oil India on May 20 recommended 1:2 bonus share along with a final dividend of Rs 2.50 per share for FY 2023-24. The record date for 1:2 bonus issue was July 2, 2024 and shares traded ex-dividend on August 30, 2024. Oil India shares traded ex-dividend on August 30, 2024. Check details below:

Oil India Shares Performance: Oil India shares delivered returns of 120% year-to-date, surged 201% in last 1-year, and gave return of 365% in last 2-years. Oil India shares rose 460% in last 5-years. The 52-week high price of Oil India share on BSE is Rs 767.30 apiece (as on 30/08/2024) and 52-week low price is Rs 184.76 per share (as on 27/09/2023), respectively.

LIC Stake In Oil India: Life Insurance Corporation Of India (LIC) has 8.04% stake in Oil India with 87,156,697 shares of the company.

Oil India Declares Bonus Share: The BSE filing OF Oil India dated May 20 said, "Recommended issue of Bonus Shares in the ratio of 1:2 i.e. 01 (one) equity share of Rs. 10/- each for every 02 (Two) existing equity shares of Rs. 10/- each fully paid up subject to the approval of shareholders through Postal Ballot [E-Voting]. The Board has fixed Tuesday, 02nd July, 2024 as Record Date to determine the eligibility of shareholders to receive bonus shares."

Oil India Dividend: The May 20 BSE filing also added, "It is further informed that the Board has recommended a final dividend of Rs. 3.75 per equity share having face value of Rs. 10/- each (pre-bonus), which translates into final dividend of Rs. 2.50 per equity share having face value of Rs. 10/- each (post-bonus) for financial year 2023-24, subject to the approval of the shareholders of the Company. The final dividend would be paid within 30 days from the date of declaration at the AGM. The final dividend is in addition to the Interim Dividend of Rs. 3.50/- (pre-bonus) and second Interim Dividend of Rs. 8.50/- (pre-bonus) paid for the financial year 2023-24.

Should You Buy Oil India Shares? Prabhudas Lilladher recommended buying Oil India shares with a target price of Rs 786 apiece. Brokerage firm Motilal Oswal has suggested investors to buy Oil India shares with target price of Rs 740. According to Oswal, Oil India remains a strong conviction at 1.9x FY26E P/B (standalone) valuation. It is a unique play to benefit from the strong multi-year uptrend in both upstream and refining."

And, according to A R Ramachandran, Independent SEBI Research Analyst, "Oil India is bearish on the Daily charts with strong resistance at 605. A Daily close below support of 557 could lead to target of 513 in the near term."

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, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of Motilal Oswal, Prabhudas Lilladher, and A R Ramachandran. 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 check with certified experts before taking any investment decision.