Upcoming Bonus Issues, Dividends: 3 PSUs Set To Reward Bonuses, Dividends Soon; Buy?

3 leading public sector undertakings (PSUs) have already announced bonus shares and dividend rewards for their shareholders. These are Hindustan Petroleum Corporation, Bharat Petroleum Corporation, and Oil India. These 3 state-run firms have declared record date for bonus share and dividends. BPCL and Oil India have yet to announce the record date for dividends. HPCL, BPCL, and Oil India have already given attractive returns over the years. More details below:

1. Hindustan Petroleum Corporation To Reward Shareholders With Dividend, Bonus Share: According to the BSE filing of the company, HPCL declared Rs 16.50 per share dividend on the face value of Rs 10/- each for FY 2023-24. The record date for the dividend has been fixed as August 9, 2024.

HPCL recommended 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.

Current market price of Hindustan Petroleum Corporation share on BSE is Rs 543.05 per share with intraday gain of 1.39%. HPCL shares surged 11.49% in last 1-month, surged 70% in last 6-months and offered attractive return of 110% in last 1-year. 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), respectively. Its market capitalisation is Rs 77,034.27 crore.

Yes Securities has recommended buy call to HPCL share with target price of Rs 700.

2. Bharat Petroleum Corporation Recommends 1:1 Bonus Share, Rs 21/Share Dividend: Last trading price of BPCL share on BSE is Rs 654.00 per share. Bharat Petroleum Corporation shares offered return of 59% in last 6-months and 80% return in last 1-year. The PSU has a market capitalisation of Rs 1,41, 869.13 crore. The 52-week high price of Bharat Petroleum Corporation share on BSE is quoted at 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.

State-run Bharat Petroleum Corporation recommended 1:1 bonus share and fixed June 22, 2024 as the record date. The Board of Directors of BPCL 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 Record Date for the final dividend will be intimated separately.

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 analyst.

3. Oil India recommended 1:2 bonus share, Rs 3.75/Share Dividend: Last trading price of Oil India share on BSE is Rs 661.45 apiece. The company has a market capitalisation of Rs 71,727.98 crore. Oil India shares jumped 75% year-to-date, gained massively by 121% in last 6-months, and zoomed 145% in last 1-year.
Oil India recommended 1:2 bonus share and a final dividend of Rs 3.75 per share for the FY 2023-24. The PSU is yet to announce record date for final dividend. Meanwhile, record date for bonus issue has been fixed as July 2, 2024.

Swarnendu Bhushan, Co. Head Institutional equities, Prabhudas Lilladher Pvt. Ltd. suggested accumulate call with target price of 722 per share. According to the analyst, "The company expects production to reach 4mmt of oil and 5bcm of gas by FY26. If the company achieves this production target, FY26 EPS would come in at Rs73. However, on a conservative basis, we build in a 5% CAGR in oil and 10% CAGR in gas production over FY24-26E, resulting in EPS of Rs67.3. We maintain 'Accumulate' rating on better visibility of production growth, valuing the standalone business at 9x FY26 adj EPS and adding the value of investments to arrive at our TP of Rs722."

Disclaimer: The stocks have been picked from the brokerage reports of Prabhudas Lilladher, City, 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.