Bharat Petroleum Corporation (BPCL) share price tag surged to a fresh 52-week higher of Rs 488 apiece on BSE, increasing 3.5 per cent intraday. The company’s board suggested a final dividend of Rs 58 per equity share, such as a one-time unique dividend of Rs 35 per equity share of Rs 10 each and every, for the economic year ended March 31, 2021, topic to the approval of the shareholders. In the afternoon bargains, BPCL stock fell from day’s higher and was trading half a per cent larger. So far in the session, 15.54 lakh shares have traded on BSE, whilst a total of 3.51 crore shares have exchanged hands on NSE.
“Bumper dividend of Rs 58 per share over and above interim dividend of Rs 21 per share led to total dividend of Rs 79 per share, which implies a yield of 18 per cent. For any strategic investor, buying a majority stake in BPCL is a good opportunity, as it will come with ready access to the third largest and one of the fastest-growing petroleum markets (India),” Yogesh Patil, Senior Research Analyst at Reliance Securities, told TheSpuzz Online. BPCL alone accounts for 18%/25%/23% of petroleum item pipeline/advertising depots/fuel retail outlets and gives a profitable entry point for any potential purchaser. With a market place share of 22% in Indian petrol and diesel sales, it would surely excite any strategic investor, who is interested to money in on the Indian development story. “Considering the recent steps undertaken by the government, divestment of its larger subsidiaries/JVs and efforts on rationalizing employee’s headcount front, we believe value unlocking of its subsidiaries can lead to potential upside to stock price. We maintain our positive view on the stock,” he mentioned.
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BPCL, on Wednesday, reported an more than 4 occasions improve in standalone profit at Rs 11,940.1 crore for the January-March quarter of FY21. It had reported a profit of Rs 2,777.6 crore in the earlier quarter. According to a BSE filing, the profit in the fourth quarter of FY21 incorporated a one-time get of Rs 6,992.9 crore. The company’s income from operations stood at Rs 98,755.62 crore, up 14.1 per cent from Rs 86,579.95 crore in the December quarter.
BPCL on technical charts
BPCL has broken out of a bullish symmetrical triangle on the bar chart as nicely as a double prime on point and figure chart, mentioned an analyst. “The monthly chart has also formed a bullish rising three candlestick pattern. The technical structure is bullish for the long term. As an investment, the stock offers great wealth creation opportunities. However, investors should keep margin of safety in mind,” mentioned Brijesh Bhatia, Senior Research Analyst, Equitymaster. The help lies at Rs 412. The bullish momentum could accelerate if the stock moves above Rs 500, he added.
(The stock suggestions in this story are by the respective investigation and brokerage firm. TheSpuzz Online does not bear any duty for their investment assistance. Please seek advice from your investment advisor prior to investing.)