Bonus Paying Stock: State-owned oil manufacturer company Bharat Petroleum Corporation Limited (BPCL) may not seem to be an attractive buy for investors looking at the historical price chart. However, when you look at its Bonus share history, this PSU company has proved successful for its long-term investors.
In the last 22 years, BPCL share price has ascended from Rs 13.50 to Rs 311.60 apiece levels, but when we add bonus share impact during these 22 years, we come to know that one’s Rs 1 lakh invested 22 years ago would have turned to Rs 2.77 crore today.
The company was renamed Bharat Petroleum Corporation Limited on 1st August 1977. It also emerged as the first refinery to process newly found indigenous crude (Bombay High), in the country. BPCL is engaged in the exploration, production, and retailing of petroleum and petrol-related products.
Since 2000, BPCL has given bonus shares on four occasions — December 2000, July 2012, July 2016 and July 2017. In December 2000, July 2012 and July 2016, BPCL announced bonus shares to its shareholders in a 1:1 ratio means one bonus share for each paid-up capital held by the shareholders. But, in July 2017, BPCL announced 1:2 bonus shares, which means one bonus share for each of two equity shares held by the shareholder of the PSU company.
Should you Invest?
ICICI Securities has add call on Bharat Petroleum Corporation with a target price of Rs 358. The current market price of Bharat Petroleum Corporation is Rs 310.8.
Time period given by analyst is one year when Bharat Petroleum Corporation Ltd. price can reach defined target.
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 121411.07 Crore, up 15.98 % from last quarter Total Income of Rs 104681.93 Crore and up 70.13 % from last year same quarter Total Income of Rs 71365.44 Crore. Company reported net profit after tax of Rs -6542.54 Crore in latest quarter.
In the second quarter of the financial year, 2022-23 (Q2FY23) operating profit of the Indian Oil sector is expected to fall 81 per cent quarter-on-quarter (QoQ), led by lower GRMs (gross refining margins), windfall taxes impacting upstream earnings, inventory loss and high diesel marketing losses.
Domestic brokerage Prabhudas Lilladher expects OMCs (Oil Marketing Companies) to report losses of Rs 404 billion in Q2, given continued pain in marketing losses and lower GRMs along with marketing inventory loss of Rs 100 bn.
The Q2 diesel marketing margins were at – Rs10/litre ( Q1 loss of Rs15/litre), while petrol marketing losses came down to Rs0.8/litre from Rs11/litre, the brokerage said, calculating marketing inventory losses at Rs 100 bn for Q2 vs Rs 13 bn in Q1 for HPCL and BPCL.
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