Maharatna Stock Turns Ex-Dividend For Rs 15/Share Payout: Buy/Sell Or Hold?

Hindustan Petroleum Corporation Limited is a large-cap company that is featured on Forbes 2000, a Government of India enterprise, and has Maharatna status. Today is the company's ex-dividend day, with eligible shareholders receiving a payout of Rs 15 per share. Following this, the stock was observed trading on the BSE with a 0.30% upside gap at Rs 523.15.

HPCL Dividend

The company has declared an interim dividend of Rs. 15 per share of face value of Rs.10 each for the FY24. "The Company has fixed February 7, 2024 as the "Record Date" to determine the eligibility of the shareholders/ beneficial owners to receive the said Interim Dividend. The Interim Dividend is proposed to be paid on or before February 23, 2024," said HPCL in a stock exchange filing.

HPCL Financials

The state-owned oil marketing company, Hindustan Petroleum Corporation Limited (HPCL), declared a net profit of Rs 529 crore for the December quarter of FY24. This is a substantial drop of 89.6% from Rs 5,118 crore in the September 2023 quarter. HPCL's net profit increased 207% year on year (YoY) from Rs 172 crore in the same period last year. In Q3FY24, HPCL's revenue from operations increased 16% sequentially to Rs 1.11 lakh crore.

Nonetheless, YoY sales growth was 2%. According to the firm, it achieved its highest-ever quarterly sales volume (including exports) of 11.90 MMT from October to December 2023 (compared to 11.25 MMT in the same time the previous year), which represents a gain of 5.8%. From 10.95 million tonne, YoY, and from 10.08 million tonne, QoQ, HPCL's domestic sales volume climbed to 11.36 million tonne in Q3FY24.

HPCL Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said HINDPETRO is currently trading at Rs 535, showcasing a notable 6% surge on February 06, 2024, reaching an all-time high. This upward momentum is supported by a consistent pattern of higher highs and higher lows on the daily chart, accompanied by robust trading volume. These patterns underscore a strong upward trajectory in the stock.

The Relative Strength Index (RSI) stands at 74 and is on an upward trend, signifying a significant surge in buying momentum. Both RSI and Stochastic RSI in the overbought region suggest that positional traders may consider holding their positions, implementing a trailing stop-loss.

The overall trend for HINDPETRO is bullish, with confluence from various technical indicators reinforcing the optimistic outlook. Given these signals, there is potential for the stock to achieve a target price of Rs 635 in the near term.

It is advisable to consider buying on dips, particularly around Rs 500, capitalizing on potential retracements in the stock price. To prudently manage risk, implementing a stop-loss (SL) at Rs 490 is recommended. This precautionary measure is crucial to safeguard investments in the event of an unexpected market reversal.

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.