2 good quality stocks to buy that will give 1:2 bonus stocks in June 2022
Indian oil company
The company declared a bonus of 1:2. This means that if you hold 100 shares, you will receive 50 free shares. The shares of the company become ex bonus on June 30, 2022 and the record date for the same is July 1, 2022. The company also said a final dividend. of Rs 3.60 per share (before bonus), resulting in a final dividend of Rs 2.40 per share after bonus for the financial year 2021-22. So, not only in terms of free shares, but also in terms of dividend, the stock is a good bet. At the current market price, the share based on last year’s dividend of Rs 11.4 per share, yields a dividend yield of nearly 9%. However, the only concern for the company at the moment is rising crude prices. However, even when demand was low due to covid, the company managed to retain dividends.
CIO: financial performance
The company reported a weak set of figures with Q4FY22 standalone net profit down 31.4% year on year (YoY) to Rs 6,022 crore on margin squeeze in petrochemicals and losses on automotive fuel sales. It is relevant to note here that the company’s performance was affected largely because it did not raise gasoline and diesel prices due to elections in key states. This had some impact on profits. Some brokerage firms remained bullish on IOC’s stock and recommended a buy on the stock. “We also expect a 51% dividend payout in FY23-24. IOCL trades at 7.5x FY24E consolidated EPS and 0.8x FY24E P/BV It is likely to benefit the most among its peers from an uptick in refining margin, supported by a robust near-term petchem margin.We value the stock at 1x FY24E P/BV to arrive at our target price of Rs 164, up 32%.We maintain our buy rating,” brokerage firm Motilal Oswal said.
Varun Beverages: another action with free issue of shares
Like India Oil, Varun Beverages also declared a free issue of shares in a ratio of 1:2. The company has set the record date for the bonus ex as June 7, with the ex date being June 6. This means that if you want a bonus share issue, you must buy the stock before the end of the June 5 trading day. Recently, CRISIL Ratings raised its rating on the company’s long-term bank loans. The rating agency raised the rating from “CRISIL AA+” to “CRISIL AA+” and revised the outlook from “Positive” to “Stable”. Varun Beverages Limited is a key player in the beverage industry and one of the largest PepsiCo franchisees in the world (outside the US).
Investing in stocks is risky. Neither the author, nor Greynium Information Technologies Pvt Ltd, shall be held liable for any losses incurred based on the decision made in the article. Markets have become extremely volatile and therefore caution is advised before investing. The author and his family do not own any stock in IOC or Varun Beverages as of this writing.