BPCL Share Price Target 2024: 1:1 Bonus, Rs 21 Dividend - BUY?
bpcl share price target 2024: 1:1 bonus, rs 21 dividend – buy?
BPCL Share Price Target 2024: Shares of Bharat Petroleum Corporation Ltd. (BPCL) gained over 5 per cent on Friday despite the company’s Q4 earnings missing street expectations on lower refining margins. The surge comes as Citi maintained a ‘BUY’ call on the stock despite below-estimate earnings.
The Board of Directors of the state-owned oil marketing company (OMC) has also recommended the issuance of bonus shares and a final dividend for its shareholder.
At the time of filing this report, around 12:00 PM, BPCL’s shares traded at Rs 614.50 apiece on NSE, up 3.72 per cent against its previous closing price. The stock has rallied 65 per cent in the past one year. Should you buy BPCL?
BPCL Share Price Target 2024
Citi has set the target price for BPCL at Rs 760 a share. From the Thursday’s closing price of Rs 592.15, this represents a potential upside of up to 28.35 per cent.
BPCL Bonus Share 2024
BPCL’s Board of Directors has recommended bonus shares in the ratio of 1:1. This means, eligible investors will get one new bonus equity share for every one equity shares they hold. BPCL shares have a face value of Rs 10.
“The Board has recommended issue of Bonus Shares in the ratio of 1:1 i.e. one new bonus equity share of Rs. 10/- each for every one existing equity shares of Rs. 10/- each fully paid up subject to the approval of shareholders through Postal Ballot,” said the PSU in a regulatory filing on Thursday, May 9.
“The Bonus Shares shall rank pari passu in all respects and carry the same rights as the existing equity shares of the Company,” added the company.
BPCL Bonus Share Record Date
BPCL has fixed the record for determining the eligible shareholders who would be entitled to get the bonus shares as June 22, 2024.
“The Board has fixed Saturday, 22nd June 2024 as Record date to determine the eligibility of shareholders to receive bonus shares,” said the company.
BPCL Dividend 2024
BPCL’s Board of Directors also recommended a final dividend of Rs 21 per equity share (pre-bonus). Post-1:1 bonus issue, this dividend will translate to Rs 10.5 each.
“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),” said BPCL in the filing.
BPCL Bonus History
BPCL has issued bonuses total four times in its history. The first bonus the company had issued was in December 2000 in the ratio 1:1, then in July 2012 in the ratio 1:11. The company again in July 2016 issued bonus shares in the ratio of 1:1, and the lastest bonus the company issues was in July 2017 in the ratio 1:2.
Bonus shares are additional shares given to the current shareholders without any additional cost, based upon the number of shares that a shareholder owns. These are company’s accumulated earnings which are not given out in the form of dividends, but are converted into free shares.
BPCL Dividend History
BPCL had earlied declared Rs 21 dividend in December 2023 and Rs 4 dividend in August 2023. Prior to that, in 2022, the PSU announced dividends twice – Rs 5 in February and Rs 6 in August. In 2021 too, the company declared dividends five times – Rs 16 in February, Rs 5 in March, Rs 35 and Rs 23 in September, Rs 5 in November.
Dividend refers to a reward, cash or otherwise, that a company gives to its shareholders. Dividends can be issued in various forms, such as cash payment, stocks or any other form. A company’s dividend is decided by its board of directors and it requires the shareholders’ approval. However, it is not obligatory for a company to pay dividend. Dividend is usually a part of the profit that the company shares with its shareholders.
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