Rs 16.50 Dividend, 1:2 Bonus Issue: Refineries PSU Inks MoU With Oil India, Buy For TP Rs 700

Leading Maharatna public sector undertaking Hindustan Petroleum Corporation Limited (HPCL) on May 28, 2024 inked an MOU with Oil India Limited seeking to collaborate on Conventional & Alternative Energy portfolio. Current market price of Hindustan Petroleum Corporation Limited share on BSE is Rs 538.85 per share with intraday gain of 0.90%. Two brokerage firms are bullish on HPCL shares and recommended buy call with maximum target price set at Rs 700 per share. Earlier, Board of BPCL recommended a dividend of Rs 16.50 per equity share on the face value of Rs 10/- each for FY 2023-24. The record date for Rs 16.50/share dividend has been fixed as August 9, 2024. The PSU also declared bonus share in the proportion of 1:2 implying shareholders will be eligible to receive 1 bonus share for every 2 shares held as on the record date. HPCL shares offered attractive return of 55% in last 6-months and 107% in last 1-year. Check details below:

HPCL Recommended Dividend: The BSE filing stated, "It is further informed that the aforesaid Final Equity Dividend of Rs.16.50 per equity share having face value of Rs. 10/- each (pre-bonus), which translates into final dividend of Rs. 11 per equity share having face value of Rs. 10/- each (post-bonus) for the Financial Year 2023-24, subject to the approval of the shareholders of the Company."

HPCL Declared Bonus Share: The Maharatna PSU announced 1:2 bonus issue and fixed June 21, 2024 as the record date. It implies shareholders will receive 1 bonus share for every 2 shares held as on the record date i.e. June 21, 2024.

HPCL Share Performance: The 52-week high price of HPCL share on BSE is Rs 594.45 per share (as on 16/02/2024) and 52-week low price is Rs 239.25 per share (as on 26/10/2023). Its market capitalisation stood at Rs 76,502.31 crore. Hindustan Petroleum Corporation Ltd share offered return of 35% year-to-date, soared 106% in last 1-year, gained 137% in last 2-years, and zoomed 92% in last 3-years.

Should You Buy HPCL Share? Brokerage firm Yes Securities has assigned buy call on HPCL share with target price of Rs 700. Meanwhile, ICICI Securities too recommended buy call with target price of Rs 625 per share. ICICI Securities said, "Our valuation for the company, at ~5.3x FY26E EV/EBITDA for the refining and marketing business, with listed investments valued at CMP delivers a revised target price of INR 625 (earlier INR 555), a material ~25% upside from CMP. Reiterate BUY."

HPCL Dividend History: Hindustan Petroleum Corporation Ltd announced 34 dividends since July 27, 2000. In last 1-year, Hindustan Petroleum Corporation announced an equity dividend amounting to Rs 15.00 per share. At the current share price of Rs 540.55, Hindustan Petroleum Corporation Ltd offers dividend yield of 2.78%.

HPCL Bonus Share History: Hindustan Petroleum Corporation offered 2 bonus issues since September 14, 2016. The last bonus issue that HPCL declared was in the ratio 1:2 with ex-bonus date fixed as July 11, 2017.

About: 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. Hindustan Petroleum Corporation Limited is a Maharatna CPSU and (HPCL) is a Government Company within the meaning of Section 617 of the Companies Act 1956.

Disclaimer:

The stock has been picked from the brokerage report of ICICI Securities and Yes Securities. 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.