1:1 Bonus Share & FIIs bought 9,15,59,770 shares: President of India-backed multibagger stock surges over 9 per cent; Scrip trades at low PE & high ROE

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 331.50 per share.

Today, the stock market made an all-time high with the BSE Sensex Index and NSER Nifty-50 Index gaining over 3 per cent each at levels of 76,739 and 23,339, respectively. Along with the market in green, shares of Bharat Petroleum Corporation Ltd (BPCL) gained 9.46 per cent to an intraday high of Rs 687 per share from its previous closing of Rs 627.60 per share. At the closing bell, shares of the company were trading at Rs 667.50 per share, up 6.36 per cent with a spurt in volume by more than 3 times on BSE.

Bharat Petroleum Corporation Limited (BPCL) is a major Indian oil and gas company that refines crude oil, distributes petroleum products and operates LPG bottling plants. They hold a significant share of the Indian market in multiple sectors, including refining (14-15 per cent), petroleum retail (26 per cent), LPG (27 per cent), and aviation fuel (21 per cent).

The board has recommended to issuing of bonus shares in the ratio of 1:1 i.e. 1 new bonus equity share of Rs 10 each for every 1 existing equity share of Rs 10 each fully paid up subject to the approval of shareholders through Postal Ballot. The Board has fixed Saturday, June 22, 2024, as the Record date to determine the eligibility of shareholders to receive bonus shares.

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The company has a market cap of over Rs 1,44,000 crore and has delivered good profit growth of 28.2 per cent CAGR over the last 5 years & has been maintaining a healthy dividend payout of 28.6 per cent. The shares of the company have a PE of 5.4x and an ROE of 42 per cent. The President of India owns the majority of the stake in the company i.e., 52.98 per cent. In March 2024, FIIs bought 9,15,59,770 shares and increased their stake to 16.79 per cent compared to 12.57 per cent in March 2023. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 331.50 per share.

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