Rs 7 Dividend Soon, 5 Bonuses: Energy PSU Inks JV With Sun Mobility, Buy For TP Rs 200

Large cap public sector undertaking Indian Oil Corporation Ltd (IOC) shares surged over 3% after it informed that its Board has given approval for formation of Joint Venture Company for battery swapping business in India as a Private Limited Company with 50:50 collaboration between IndianQil and Sun Mobility Pte. Ltd. Singapore (SMS). Current market price of IOC share on BSE is Rs 164.10 per share. Indian Oil Corporation shares zoomed 81% in last 1-year and offered over 108% return in last 2-years.

Leading brokerage firm Sumeet Bagadia of Choice Broking has recommended buy call to Indian Oil Corporation Ltd (IOCL) shares for target prices of Rs 190 and Rs 200 with a stop loss at Rs 165. Meanwhile, Motilal Oswal Financial Services too recommended buy to IOC share with target price of Rs 195. Earlier, IOC recommended Rs 7 per share dividend and fixed July 12 as record date for dividend. It is important to note that LIC has 6.92% stake in IOC with 977,788,060 shares of the PSU. Check key details below:

IOC Gives Update On JV With Singapore's Sun Mobility: The JV will carry out the deployment and operation of battery-as-a-service solution (BAAS) for two-wheeler, three-wheeler, and four-wheeler vehicles, each with a gross vehicle weight lower than 2 tonnes (small format electric vehicle - SFEV) and retrofit to convert to SFEV using docks and batteries to enable their functioning as electric vehicles for SFEV-BAAS over a network of swap points including Indian Oil retail outlets, according to the BSE filing. IOC informed that the initial paid-up share capital of the JV will be Rs 2 lakh comprising 20,000 equity shares having face value of Rs 10 each to be contributed equally by the JV partners.

IOCL said that currently, EV 2W and 3W market is seeing exponential growth in India. Battery swapping technology is expected to be one of the prominent energy dispensing technologies in EVs.

Indian Oil Corporation Ltd Declares Record Date For Dividend: According to BSE filing of IOC issued as on May 30, "Friday, July 12, 2024, as the Record Date for the purpose of determining eligibility of members to receive final dividend for the year ended March 31, 2024."

Indian Oil Corporation Share Performance: The 52-week high price of IOC shares on BSE is Rs 196.80 per share (08/02/2024) and 52-week low price is Rs 85.51 per share (26/10/2023), respectively. IOC has a market capitalisation of Rs 2,31,729.52 crore. IOC shares slipped over 2% in last 2-weeks, gained 26% year-to-date, and offered attractive return of 114% in last 3-years.

IOC Dividend: According to the regulatory filing issued as on April 30, "Board has recommended a final dividend of 70% for the year 2023-24 i.e. Rs. 7.00 per equity share of face value of Rs.10/- each on the paid-up share capital, subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company."

Indian Oil Corporation Ltd Q4: IOC on April 30 declared a fall of 52% in its standalone net profit at Rs 4838 crore for the quarter ended March 2024 as compared to Rs 10,059 crore reported in the similar quarter of last year. IOC's revenue from operations fell 3% to Rs 2.19 lakh crore for Q4 as against Rs 2.26 lakh crore in the preceding year's quarter.

IOC Bonus Share History: Indian Oil Corporation Ltd. has given 5 bonuses since Aug. 14, 2003. The last Bonus that Indian Oil Corporation Ltd. anoununced was in the ratio 1:2 with ex-date of June 30, 2022.

Indian Oil Corporation About: Indian Oil Corporation Ltd is India's largest commercial ISO-9002 certified enterprise, is the highest ranked Indian company in the prestigious Fortune 'Global 500' listing. IOCL is the 20th largest petroleum company in the world, according to its official website.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal and Choice Broking. 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.