India’s oil refining and fuel marketing sector is dominated by state-owned companies that play a crucial role in meeting the country’s growing energy demands. As of April 2023, India has a total refining capacity of 253.91 million metric tonnes, making it Asia’s second-largest refiner.
Investing in stocks of these oil refining and marketing companies can provide exposure to the growing energy needs of the Indian economy. However, the sector is also influenced by factors like global crude oil prices, government policies and competition from private players.
Listed below are such state-owned oil refining and fuel marketing companies that have announced bonus shares recently:
Hindustan Petroleum Corporation Ltd
With a market capitalization of Rs. 71,516 crores, the shares of Hindustan Petroleum Corporation started Friday’s trading session on a higher note at Rs. 510 compared to its previous close of Rs. 501. During the trading session, the shares hit a high of Rs. 514, gaining around 2 percent and are currently trading at Rs. 504 apiece.
Looking at the company’s financial statements, the revenue (net of Excise Duty) increased by 3 percent from Rs. 111,348 crores during the December quarter to Rs. 114,678 crores in the March quarter. In addition, the net profits magnified by 280 percent from Rs. 713 crores to Rs. 2,709 crores during the same period.
Additionally, the Board of Directors of the oil marketing company recommended the issue of bonus shares in the ratio 1:2 i.e., one new bonus equity share of Rs. 10 each for every two existing equity shares of Rs. 10 each fully paid up.
This is the third bonus issue of shares for Hindustan Petroleum Corporation to its shareholders. Earlier, it had issued bonus shares in the ratio of 2:1 two free shares for everyone held in 2016 and then approved a bonus issue in the proportion of 1:2 in 2017.
Furthermore, the board of HPCL has also recommended a final dividend today of Rs. 16.50 per equity share having a face value of Rs. 10 (pre-bonus), which translates into a final dividend of Rs. 11.00 per equity share with a face value of Rs. 10 (post-bonus) for 2023-24.
The final equity dividend is in addition to the Interim Dividend of Rs. 15.00 per share (pre-bonus) paid for the financial year 2023-24.
Bharat Petroleum Corporation Ltd
With a market capitalization of Rs. 1,33,225 crores, the shares of BPCL started Friday’s trading session on a higher note at Rs. 615 compared to its previous close of Rs. 592.15. During the trading session, the shares hit a high of Rs. 621.95, gaining around 5 percent and are currently trading at Rs. 616 apiece.
Looking at the company’s financial statements, the revenue (net of Excise Duty) increased marginally by 1 percent from Rs. 115,499 crores during the December quarter to Rs. 116,555 crores in the March quarter. In addition, the net profits magnified by 50 percent from Rs. 3,181 crores to Rs. 4,790 crores during the same period.
Additionally, the company’s Board of Directors have recommended the issue of bonus shares 1:1 i.e. one new bonus equity share of Rs. 10 each for every existing equity share of Rs. 10 each fully paid up subject to the approval of shareholders through postal ballot.
Furthermore, the board of BPCL also recommended a final dividend of Rs. 21 per equity share (pre-bonus) of face value of Rs. 10 each for the year 2023-24, which translates into a final dividend of Rs. 10.5 per share (post-bonus) of the same face value, subject to the approval of shareholders.
Written by Vaibhav Patil
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