1:2 bonus shares after 6 years & Rs 3.75/share dividend announced: President of India-backed low PE & high ROE multibagger stock; Reports positive FY24 results!

The stock gave multibagger returns of 145 per cent in just 1 year and a whopping 380 per cent in 3 years.

Oil India Ltd, a central public sector undertaking, is a major player in India's oil and gas industry. They focus on activities across the entire oil and gas production chain, including exploration, development, and production of crude oil and natural gas. They also handle the transportation of crude oil, production of liquefied petroleum gas (LPG), and even offer related services for oil blocks. Notably, the company was recently accorded "Maharatna" status in recognition of its significant contributions.

The Board of Directors of the company has recommended the issue of bonus shares in the ratio of 1:2 i.e., 1 equity share of Rs 10 each for every 2 existing equity shares of Rs 10 each fully paid up subject to the approval of shareholders through Postal Ballot [E-Voting]. The Board has fixed Tuesday, July 02, 2024, as the Record Date to determine the eligibility of shareholders to receive bonus shares.

Additionally, the Board has recommended a final dividend of Rs 3.75 per equity share having a face value of Rs 10 each (pre-bonus), which translates into a final dividend of Rs 2.50 per equity share having a face value of Rs 10 each (post-bonus) for the financial year 2023-24, subject to the approval of the shareholders of the company. The final dividend would be paid within 30 days from the date of declaration at the AGM. The final dividend is in addition to the interim dividend of Rs 3.50 (pre-bonus) and the second interim dividend of Rs 8.50 (pre-bonus) paid for the financial year 2023-24. The record date for payment of the final dividend will be fixed and intimated in due course.

Standalone Results

According to Quarterly Results, the net sales increased by 2 per cent to Rs 5,756.73 crore and net profit increased by 13.5 per cent to Rs 2,028.83 crore in Q4FY24 compared to Q4FY23. In its annual results, the net sales decreased by 4.9 per cent to Rs 22,129.79 crore and net profit decreased by 18.5 per cent to Rs 5,551.85 crore in FY24 compared to FY23.

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Consolidated Results

According to quarterly results, the net sales increased by 16 per cent to Rs 10,165.78 crore and net profit increased by 17.8 per cent to Rs 2,332.94 crore in Q4FY24 compared to Q4FY23. In its annual results, the net sales decreased by 11.5 per cent to Rs 36,303.62 crore and net profit decreased by 29.2 per cent to Rs 6,980.45 crore in FY24 compared to FY23.

On Saturday, shares of Oil India Ltd zoomed 1.05 per cent to Rs 646.30 per share from its previous closing of Rs 639.60 with an intraday high of Rs 654.15 and an intraday low of Rs 640.85. The stock’s 52-week high is Rs 669.05 and its 52-week low is Rs 240.65.

The company has a market cap of over Rs 70,000 crore and has delivered good profit growth of 26.1 per cent CAGR over the last 5 years. The stock has a PE of 10x whereas the sectoral PE is 16x with ROE and ROCE of 26 per cent each.

The President of India owns the majority of the stake i.e., 56.66 per cent. The stock gave multibagger returns of 145 per cent in just 1 year and a whopping 380 per cent in 3 years. Investors should keep an eye on this Mid-Cap stock.  

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