BPCL shares hit 52-week high on dividend declaration

Shares of state-run oil refiner Bharat Petroleum Corporation Limited surged 2.3% to hit a 52-week high of ₹434.30 apiece on the BSE on Wednesday after the company announced an interim dividend of ₹21 for the FY23-24.

The scrip closed 1.07% higher at ₹428.85. This is in line with the broader BSE Sensex which ended 727.71 points or 1.10% higher at 66,901.91. The company’s market capitalisation stood at ₹93,028.40 crore with more than 4.84 lakh shares exchanging hands on the BSE as against the two-week average of 2.28 lakh shares. The company hit a 52-week low of ₹314.10 on February 28 this year.

In the past one month, three months and one year, the counter has given 28.21%, 20.21% and 26.58% in returns, respectively.

"In continuation of our letter dated 21st November 2023, this is to inform you that the Board of Directors at its meeting held on 29th November 2023 has declared an interim dividend of ₹21/- per equity share of face value ₹10/- each i.e. 210% for the financial year 2023-24. Further, the board of directors has fixed Tuesday, 12th December 2023 as the record date to determine the eligibility of the shareholders to receive the said Interim Dividend. It may kindly be noted that the above dividend would be paid or the warrant in respect thereof would be posted on or before 28th December 2023," the company says in a regulatory filing.  

In the July to September quarter, the company swung to black, after it reported a consolidated net profit of ₹8,244 crore against the loss of ₹338 crore in the same period last year. The company’s revenue from operations, however, plunged to ₹1.17 lakh crore in the September quarter as against ₹1.28 lakh crore in the same period last year.

In the September quarter, the domestic oil refiner reported a gross refining margin of $18.5 per barrel.

Analysts at Motilal Oswal expect refining margins to sustain close to mid-cycle levels and they are unlikely to reach extremities, which can be a near-term positive for OMCs. "Retail price cuts due to upcoming elections and/or a surge in crude oil prices due to active quota management by OPEC+ remain key risks to our call. However, we highlight that even with crude at $85/bbl and MS/HSD cracks at long-term average levels, BPCL is expected to earn a marketing margin of ₹8.9/₹6.7 per litre on MS/HSD," the brokerage firm says in a note. The brokerage firm has given a 'Neutral' rating on the stock with a target price of ₹380.

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