Rs 21 Dividend, 1:1 Bonus Issue: Maharatna PSU Issues Update On Bonus Share Allotment, Buy Or Sell?

Large cap maharatna public sector undertaking Bharat Petroleum Corporation Ltd (BPCL) will soon reward shareholders with bonus share in the proportion of 1:1. Earlier this month, the PSU fixed June 22, 2024 as the record date to determine the eligibility of shareholders to receive bonus shares. Current market price of Bharat Petroleum Corporation Ltd share on BSE is Rs 628.20 per share with marginal intraday decline of 0.04. BPCL shares climbed 61% in last 6-months and plummeted 4% in last 3-months. Its market capitalisation is Rs 1,36,272.46 crore. BPCL also recommended final dividend of Rs 21/share on May 9, 2024 and yet to fix the record date.

Today, Bharat Petroleum Corporation Ltd issued a new update pertaining to allotment of bonus share. BPCL has a PE of 5.11 and ROE of 35.72. Motilal Oswal has issued neutral rating to BPCL share withtarget price of Rs 660 and Citi recommended buy call with target price of Rs 760 per share. More details below:

Bharat Petroleum Corporation Ltd New Update On Bonus Share Allotment: According to the BSE filing of the company, "The Securities and Exchange Board of India (SEBI) vide its circular no. SEBI/ LAD-NRO/GN/2023/1302023,ed May 23, 2023 has amended the provisions of the Chapter XI-Bonus issue of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and mandated that the allotment of shares in a Bonus issue shall be made only in dematerialised form.

In compliance with the above provisions, the Bonus Shares would be allotted to the shareholders in demat mode only. Accordingly, the shareholders holding shares in physical mode are requested to provide their demat account number to the Company/ RTA so that their bonus shares are credited to their respective account. In this connection, the shareholders holding shares in physical mode are requested to submit the following documents -

1. Request letter for credit of Bonus Share in Demat Account.

2. Form ISR-1

3. Form ISR-4

4. Self-attested copy of PAN

5. Self-attested copy of Aadhar/ Any other Government Issued Address Proof; and

6. Client Master List duly attested by your Depository Participant."

BPCL Recommended Rs 21/Share Dividend: As per the BSE filing of BPCL dated May 9, 2024, "The Board of Directors has recommended a final dividend of Rs. 21/- per equity share of face value of Rs.10/-each (pre-bonus), which translates into final dividend of Rs.10.5/- per equity share of face value of Rs.10/- per equity share) (post-bonus), subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM). The final dividend would be paid within 30 days from the date of its declaration at the AGM. The Record Date for the final dividend will be intimated separately."

BPCL Share Performance: The 52-week high price of Bharat Petroleum Corporation share on BSE is Rs 687.65 per share (as on 16/02/2024) and 52-week low price is Rs 331.50 per share (as on 26/10/2023), respectively. Bharat Petroleum Corporation shares surged 69% in last 2-years, gained 36% in last 3-years, and offered return of 60% in last 5-years. BPCL shares gave return of 39% year-to-date, soared 74% in last 1-year, zoomed 89% in last 2-years, and gained 40% in last 3-years.

Should You Buy BPCL Shares? Brokerage firm Citi has recommended buy call for BPCL share with target price of Rs 760. The company's pre-tax profit arrived at 20% below the brokerage's estimates, and net income witnessed a 39% fall as a result of Rs 1,800 crore impairment of investments in an arm. Despite this, the whole-year FY24 EPS stayed robust at Rs 125 per share, said analysts. Meanwhile, Motilal Oswal has issued neutral rating for BPCL shares with the target price of Rs 660.

According to Motilal Oswal, "we maintain our Neutral rating with a TP of INR660, valuing the stock at 1.5x FY26E BV."

Bharat Petroleum Corporation About: BPCL, a Maharatna PSU, aims to efficiently meet the energy needs of our nation with a combined refining capacity of over 40 MMT through refineries in Mumbai, Kochi, Numaligarh and Bina, which are strategically located. One of the best in class & digitally enabled refineries with state-of-the-art technology, efficient operations and high standards of quality, safety, occupational health, environment protection and security.

Disclaimer:

The stock has been picked from the brokerage report of Motilal Oswal and Citi. 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.