1:2 Bonus issue announcement: Turnaround story as Maharatna PSU company posts stellar profits with 165 per cent dividend!

The Board of Directors announced issuing bonus shares in the ratio of 1:2, meaning one new bonus equity share of Rs 10 each will be issued for every two existing fully paid-up equity shares.

Hindustan Petroleum Corporation Limited primarily operates in the refining of crude oil and the marketing of petroleum products. Additionally, the company is involved in the production of hydrocarbons and offers services for the management of Exploration and Production (E&P) Blocks. The company has made a significant announcement regarding the bonus issue as well as dividends while announcing the results.

Recent Announcements

Hindustan Petroleum Corporation Limited (HPCL) has delivered an outstanding financial performance, achieving a record Consolidated Profit after Tax (PAT) of Rs 16,015 crore during FY 2023-24, a significant turnaround from the Consolidated Net Loss of Rs 6,980 crore in the previous financial year. The Standalone PAT for FY 2023-24 also reached an all-time high at Rs 14,694 crore, compared to a Standalone Net Loss of Rs 8,974 crore in the prior fiscal year.

As per Quarterly Results in Q4 FY24, the company reported Revenue from operations of Rs 1,21,532 crore, marking a 6.2 per cent increase over the Rs 1,14,445 crore reported for the corresponding quarter of the previous year. For FY 2023-24, Revenue from operations totaled Rs 4,61,638 crore, slightly lower than the Rs 4,66,192 crore reported in the previous year.

The Board of Directors has proposed issuing bonus shares in the ratio of 1:2, meaning one new bonus equity share of Rs 10 each will be issued for every two existing equity shares of Rs 10 each, fully paid up, subject to approval by the company's members.

Additionally, the Board has recommended a Final Dividend of Rs 16.50 per equity share with a face value of Rs 10 (pre-bonus), translating to a final dividend of Rs 11.00 per equity share with a face value of Rs 10 (post-bonus) for FY 2023-24, pending approval at the Annual General Meeting. This final dividend is in addition to the interim dividend (pre-bonus) of Rs 15 per equity share with a face value of Rs 10 paid for FY 2023-24.

Share Performance of HPCL

Today, the company's stock closed at around Rs 502.25 per share on the BSE, with a market capitalisation of Rs 71,246 crore. Additionally, the stock has delivered a return of around 97 per cent in the past one year. It has great potential to deliver multibagger returns in the future.

Investors must keep this Large-Cap multibagger stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.