With a yield of 5.30%, stock of this Maharatna company to turn ex-dividend soon
Premium- With a market valuation of Rs. 37,407.12 Cr., Hindustan Petroleum Corporation Limited is a large-cap corporation that specializes in petroleum products.
With a market valuation of Rs. 37,407.12 Cr., Hindustan Petroleum Corporation Limited is a large-cap corporation that specializes in petroleum products. HPCL is a Forbes 2000 firm and a government of India enterprise having Maharatna status. HP Refineries, HP Retail Petrol Pumps, HP LPG Gas, HP Lubricants, HP Aviation, HP Direct Sales, HP Projects and Pipelines, HP Supplies, Operations And Distribution (SOD), HP International Trade, HP Natural Gas and Renewables Energy, HP Petrochemicals, and HP R&D are all included in the company's business portfolio. For the financial year 2021–2022, the company has announced a final equity dividend of ₹14 per share or 140% at a face value of ₹10. The dividend amount resulted in a high dividend yield of 5.30% at the current market price of ₹263.70.
The Board of Directors of the company has said in a stock exchange filing that “the 70th ANNUAL GENERAL MEETING of the Members of Hindustan Petroleum Corporation Limited (“HPCL" or “Company") will be held on Tuesday, August 30, 2022 at 11.00 a.m. (IST) through Video Conferencing (“VC") / Other Audio Visual Means (“OAVM") to transact the following business: To declare a Final Equity Dividend of ₹14 per Share for the Financial Year 2021-2022 and To appoint a Director in place of Shri Vinod S Shenoy (DIN:07632981) who retires by rotation and being eligible, offers himself for re-appointment."
The Board of HPCL also informed to stock exchanges that “The Company has announced Record Date as Tuesday, August 23, 2022 for the Final Equity Dividend for Financial Year 2021-2022 and accordingly, Final Dividend on Equity Shares as recommended by the Board of Directors for the Financial Year 2021-2022, if declared at the AGM, will be payable after deduction of applicable TDS, if any, to those eligible members whose names appeared: As Beneficial Owners as on Tuesday, August 23, 2022 as per the list of beneficial owners to be furnished by NSDL and CDSL in respect of the shares held in electronic form; and As Members as on Tuesday, August 23, 2022 in respect of shares held in physical form after giving effect to valid transmission and transposition requests lodged with the Company."
Since the ex-date falls one day before the record date, the ex-dividend date is falling on 22nd August 2022 as per the data available on BSE.
Following the Q1FY23 results of HPCL, the brokerage firm Sharekhan has set a target price of ₹290 for the stock. The research analysts of the broking firm have said that “We believe that H1FY23 would factor in the worst for OMCs and a gradual normalisation of refining & marketing margins (led by recent sharp decline in Brent crude oil price to $95/ bbl) would lead to overall earnings recovery. Moreover, HPCL’s valuation of 3.7x its FY2024E EPS and 0.8x its FY2024E P/BV is attractive and FY24E DPS implies a 10% dividend yield. Hence, we maintain a Buy on HPCL but with a lower PT of 290 (reflects lower P/E multiple given a sharp fall in refining margins)."
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On the NSE, the stock had touched a 52-week-high of ₹354.80 on 15-November-2021 and a 52-week-low of ₹206.50 on 20-June-2022 indicating that at the current market price of ₹263.70 the stock is trading 25.67% below the 52-week-high and 27.69% above the 52-week-low. The stock is trading above 5 days, 10 days, 20 days, 50 days, 100 days, and 200 days Exponential Moving Average (EMA), at the current market price.
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