BPCL share price hits fresh 52-week high on net profit in Q4; firm declares final dividend

For any strategic investor, shopping for a majority stake in BPCL is an effective alternative, as it’s going to include prepared entry to the third largest and one of many fastest-growing petroleum markets, mentioned an analyst

Bharat Petroleum Corporation (BPCL) share value surged to a contemporary 52-week excessive of Rs 488 apiece on BSE, rising 3.5 per cent intraday. The corporate’s board really useful a closing dividend of Rs 58 per fairness share, together with a one-time particular dividend of Rs 35 per fairness share of Rs 10 every, for the monetary yr ended March 31, 2021, topic to the approval of the shareholders. Within the afternoon offers, BPCL inventory fell from day’s excessive and was buying and selling half a per cent greater. Thus far within the session, 15.54 lakh shares have traded on BSE, whereas a complete of three.51 crore shares have exchanged palms on NSE.

“Bumper dividend of Rs 58 per share over and above interim dividend of Rs 21 per share led to complete dividend of Rs 79 per share, which means a yield of 18 per cent. For any strategic investor, shopping for a majority stake in BPCL is an effective alternative, as it’s going to include prepared entry to the third largest and one of many fastest-growing petroleum markets (India),” Yogesh Patil, Senior Analysis Analyst at Reliance Securities, informed Monetary Specific On-line. BPCL alone accounts for 18%/25%/23% of petroleum product pipeline/advertising depots/gas shops and offers a profitable entry level for any potential purchaser. With a market share of twenty-two% in Indian petrol and diesel gross sales, it will definitely excite any strategic investor, who’s to money in on the Indian progress story. “Contemplating the latest steps undertaken by the federal government, divestment of its bigger subsidiaries/JVs and efforts on rationalizing worker’s headcount entrance, we consider worth unlocking of its subsidiaries can result in potential upside to inventory value. We keep our constructive view on the inventory,” he mentioned.

BPCL, on Wednesday, reported an over 4 instances improve in standalone revenue at Rs 11,940.1 crore for the January-March quarter of FY21. It had reported a revenue of Rs 2,777.6 crore within the earlier quarter. In line with a BSE submitting, the revenue within the fourth quarter of FY21 included a one-time acquire of Rs 6,992.9 crore. The corporate’s income from operations stood at Rs 98,755.62 crore, up 14.1 per cent from Rs 86,579.95 crore within the December quarter.

BPCL on technical charts

BPCL has damaged out of a bullish symmetrical triangle on the bar chart in addition to a double prime on level and determine chart, mentioned an analyst. “The month-to-month chart has additionally fashioned a bullish rising three candlestick sample. The technical construction is bullish for the long run. As an funding, the inventory presents nice wealth creation alternatives. Nonetheless, buyers ought to hold margin of security in thoughts,” mentioned Brijesh Bhatia, Senior Analysis Analyst, Equitymaster. The assist lies at Rs 412. The bullish momentum would possibly speed up if the inventory strikes above Rs 500, he added.

(The inventory suggestions on this story are by the respective analysis and brokerage agency. Monetary Specific On-line doesn’t bear any accountability for his or her funding recommendation. Please seek the advice of your funding advisor earlier than investing.)