BPCL share price hits fresh 52-week high on net profit in Q4; firm declares final dividend
Bharat Petroleum Corporation (BPCL) share price surged to a fresh 52-week high of Rs 488 apiece on BSE, rising 3.5 per cent intraday. The company’s board recommended a final dividend of Rs 58 per equity share, including a one-time special dividend of Rs 35 per equity share of Rs 10 each, for the financial year ended March 31, 2021, subject to the approval of the shareholders. In the afternoon deals, BPCL stock fell from day’s high and was trading half a per cent higher. So far in the session, 15.54 lakh shares have traded on BSE, while 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 Financial Express Online. BPCL alone accounts for 18%/25%/23% of petroleum product pipeline/marketing depots/fuel retail outlets and provides a lucrative entry point for any prospective buyer. With a market share of 22% in Indian petrol and diesel sales, it would certainly excite any strategic investor, who is interested to cash in on the Indian growth 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 said.
BPCL, on Wednesday, reported an over four times increase 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 previous quarter. According to a BSE filing, the profit in the fourth quarter of FY21 included a one-time gain of Rs 6,992.9 crore. The company’s revenue 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 well as a double top on point and figure chart, said 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,” said Brijesh Bhatia, Senior Research Analyst, Equitymaster. The support lies at Rs 412. The bullish momentum might accelerate if the stock moves above Rs 500, he added.