1:2 Bonus, Rs 3.75 Dividend: Buy Oil PSU For TP Rs 775, Record Date Soon: Motilal Oswal

Oil India Ltd shares witnessed attractive gain of 2.52% to Rs 702.00 per share in trade today on BSE. Oil India shares rallied 85.57% year-to-date and 180% in last 1-year. Brokerage firm Motilal Oswal has recommended investors to buy Oil India share with target price of Rs 775 per share. Earlier, Oil India declared its consolidated net profit at Rs 2332.94 crore for March 2024 quarter as against Rs 1979.74 crore net profit in the corresponding quarter of last year.

Earlier this year on May 20, Oil India declared 1:2 bonus share along with a final dividend of Rs 3.75 per share for the FY 2023-24. The company has not yet announced the record date for final dividend. Record date for bonus issue has been fixed as July 2, 2024. Life Insurance Corporation Of India (LIC) has 8.04% stake in Oil India with 87,156,697 shares of the company. Check details below:

Motilal Oswal Recommends Buy: According to the research report of the analyst dated May 28, 2024, "OINL remains a strong conviction at 1.3x FY26E P/B (standalone) valuation. It is a unique play to benefit from the strong multi-year uptrend in both upstream and refining. The stock currently trades at a P/E multiple of 8.4x FY26E EPS and 6.4x FY26E EV/EBITDA. We value the stock at 8.5x FY26E standalone adj. EPS and add investments to arrive at our TP of INR775. Maintain BUY."
Kotak Securities Downgrades Oil India Shares To Sell: Kotak Securities sought to downgrade Oil India shares to sell from reduce. But, the brokerage firm upgraded the target price to Rs 500 from Rs 475 earlier. This downgrade in stock occurred due to excessive optimism in the stock's valuation.

Oil India Declares Bonus Share: The exchange filing issued as on May 20 added, "Further, the Board has 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: According to the BSE filing of the PSU issued as on May 20, "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.

Oil India Ltd Q4: The PSU's revenue from operations rallied 16% to Rs 10,166 crore from the year-ago period. Its EBITDA jumped to Rs 3838 crore. Its crude oil earnings before interest and tax (EBIT) declared at Rs 1,744.75 crore, up 18% from the previous year. EBIT for the natural gas segment announced at Rs 687.34 crore as against Rs 823.55 crore in the previous year. Oil India announced it recorded highest ever EBIDTA of Rs 11,643.30 crore for FY24. Its crude oil production in Q4 jumped 6% from last year with an overall surge of 5.76% to 3.359 MMT in FY24, compared to 3.176 MMT produced during FY23, as per company's press release.

How To Be Eligible To Receive Oil India Bonus Share & Dividend? Shareholders who hold Oil India's shares before the ex-date and record date will become eligible to receive bonus shares and dividend from the company. Eligibility for bonus shares and dividend depend on record date and ex-date of the shareholders. The record date is the cut-off date that the company sets. In Oil India case, record date for bonus issue is July 2. Record date for dividend has not been declared so far.

Oil India Share Performance & Return: Oil India shares gained 86% year-to-date, jumped 87% in last 6-months, rallied 180% in last 1-year, offered return of 205% in last 2-years, and gave return of 369% in last 3-years. The 52-week high price of Oil India share on BSE is Rs 708.85 apiece (as on 14/06/2024) and 52-week low price is Rs 240.65 per share (as on 26/06/2023), respectively.

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 Oswa. 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.