Santosh Meena, Head of Research at Swastika Investmart Ltd, said: “BPCL could experience positive momentum ahead of the ex-date for a large dividend of ??58 / Share and I think it can continue its positive momentum after the ex-dividend date, so we can build that stock up to the current level. “

Meena added that he has a bullish view of the overall PSU basket as the Nifty PSE Index is likely to break multi-month resistance. Morgan Stanley’s comment that he expects India to be included in global bond indices in early 2022 may lead to positive sentiment in the PSU space. BPCL has also seen a break in the ascending triangle formation which could lead to a new rally stage, he said.

Rahul Sharma, co-founder of Equity99, said that in addition to the announcement of the ex-dividend, the company, according to the recent filing, is also formulating an export strategy for its petroleum products, as covid-19 modifies the fuel demand model in India. Sharma recommended a buy on the stock with a target price of ??510 keeping the stop loss at ??422.

“The final dividend, recommended by the board of directors at its meeting on May 26, is subject to the approval of shareholders at the annual general meeting (AGM) scheduled for September 27,” BPCL said. The company has hinted that the company’s membership register and share transfer books will remain closed from September 18-27, 2021 (both days inclusive) for the purpose of final dividend payment.

For the quarter ended in June (Q1FY22), BPCL announced a decrease of 27.6% of its net profit to ??1,501 crores. The country’s second-largest oil refiner and fuel marketing company made a net profit of ??2,076 crore in the quarter of last year. The company’s turnover amounts to ??89,687 crore in April-June this year from ??50,617 crores last year. The government is selling its entire 52.98% stake in BPCL and intends to complete the privatization of BPCL this year.