BPCL, HPCL shares jump up to 5% post-Q4 earnings, should you buy, sell, or hold? Here’s what experts say

Shares of Bharat Petroleum Corporation and Hindustan Petroleum Corporation saw notable surges of 5% and 2.6% respectively, with their shares reaching ₹621.95 and ₹514.40 apiece. This uptick followed both companies reporting in-line performance for the March quarter and for the full fiscal year FY24. 

Compared to the performance in the March quarter, both companies have exhibited improved performance for the full fiscal year FY24. This improvement stemmed from the nearly two-year-long freeze in petrol and diesel prices. 

Although the freeze was impacted by the rise in crude oil prices following Russia's invasion of Ukraine in 2022, international rates moderated for much of 2023. This trend allowed companies to secure substantial profits.

Also Read: 1:1 bonus issue, final dividend: State-run BPCL announces dual corporate action; Check record dates

In the fourth quarter of the 2023–24 fiscal, BPCL recorded a consolidated net profit of ₹4,789.57 crore, down from ₹6,870.47 crore in the corresponding period of the previous fiscal year. However, for the full fiscal year 2023–24, BPCL achieved a record net profit of ₹26,858.84 crore, a significant increase from ₹2,131.05 crore in the prior year.

The company's gross refining margin surged to USD 14.14 per barrel, a notable improvement from USD 8.83 per barrel in the previous fiscal year. BPCL's refineries processed 39.93 million tonnes of crude oil during FY24, compared to 38.53 million tonnes in FY23. Additionally, market sales increased by 4.33% to 51.04 million tonnes in FY24.

BPCL achieved an average ethanol blending percentage of 11.69% throughout FY24, with the highest blending rate recorded in the fourth quarter at 12.15%.

Furthermore, BPCL expanded its network by adding 308 new petrol pumps, bringing the total count to 21,840, and commissioned 323 new CNG stations, increasing the total count to 2,031.

Also Read: 1:2 Bonus Issue: Maharatna PSU HPCL to give one share for every two held, to trade ex bonus on THIS date

In contrast, HPCL reported a 25% decrease in net profit to ₹2.709.31 crore for the March quarter of the 2023–24 fiscal year, attributed to lower refining margins. For the full fiscal year 2023–24, HPCL reported a record net profit of ₹16,014.61 crore, a significant improvement from the loss of ₹6,980.23 crore in the previous year.

Announces bonus shares and dividend

BPCL and HPCL have announced bonus share issues and declared dividends. BPCL's board approved a 1:1 bonus issue, with a record date set for June 22, 2024. They also recommended a final dividend of ₹21 per equity share (pre-bonus), subject to shareholder approval.

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Similarly, HPCL announced a bonus issue in the ratio of 1:2, with a record date of June 21, 2024. This marks the third bonus issue for HPCL shareholders, following previous issues in 2016 and 2017. Additionally, HPCL's board recommended a final dividend of ₹16.50 per equity share (pre-bonus) for FY 2023–24, in addition to the interim dividend of ₹15 per equity share (pre-bonus).

Should you buy stocks post results? 

Global brokerage firm Citi maintained its 'buy' rating on BPCL with a target price of 760 apiece, while it also maintained a 'buy' call on HPCL but cut the target price to 630 apiece. 

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.