Exploring BPCL: The Leader in the Petroleum Sector

Bharat Petroleum Corporation Limited (BPCL) ranks next only to IOCL in the list of the largest government-owned downstream oil producers. A public sector undertaking, BPCL is owned by the Ministry of Petroleum and Natural Gas, GoI. Outside of manufacturing, BPCL also refines crude oil and markets and distributes petroleum products.

Headquartered in Mumbai, BPCL secured the 233rd spot on the 2023 Fortune 500 list. Growing profits and diversification plans have positioned BPCL in the spotlight of the top stock exchanges across the country. In this article, we walk you through the financial performance, stock prices, and growth plans of the company. Let’s start!


BPCL Financial Analysis

BPCL reported its highest-ever half-yearly profit of Rs. 19,052 crore for the fiscal year 2023-24. With an exorbitant uptick in profits and leveling market sales, it has weathered shifting market conditions with the maturity of a leading energy company.

Prime Minister Shri Narendra Modi laid the foundation stone for the Rs. 49000 crore Ethylene Cracker Project at BPCL’s Bina refinery, taking a significant step towards the expansion and innovation of the company.

The following table includes an overview of the financial stats of the company for the year 2023-24. Figures have been presented quarterly to facilitate comparison.

Category 2023 (1st Quarter) 2023 (2nd Quarter) 2023 (3rd Quarter) 2023 (4th Quarter)
Sales Rs. 1,18,115 Crore Rs. 1,12,985 Crore Rs. 1,03,044 Crore Rs. 1,15,499 Crore
Expenses Rs. 1,08,206 Crore Rs. 97,438 Crore Rs. 90,386 Crore Rs. 1,09,584 Crore
Operating Profit Rs. 9,909 Crore Rs. 15,548 Crore Rs. 12,658 Crore Rs. 5,915 Crore
OPM% 8%  14% 12% 5%

BPCL Share Price Analysis

BPCL share price is trading around Rs. 620. With a market capitalisation of Rs. 1,35,470 crores and a P/E ratio of 4.00, Bharat Petroleum has delivered an applaudable performance. Over the past year, its share price has surged by 91.57%, while the 5-year performance of its stock stands at 68.52%. Bharat Petroleum’s share price ranged between Rs. 320.55 and Rs. 687.95 over the past year. Below is a BPCL share price chart.

Exploring BPCL

In the December quarter, BPCL scored a net profit of Rs. 3,181 crore. The company has a high promoter holding of 52.98%. Out of 31 stock analysts, 15 have given it a buy rating. Only 4 analysts have given it a sell rating.

Should One Invest in BPCL Stocks?

Bharat Petroleum Corp. Ltd. is a leading company in India’s petroleum sector, engaged in the exploration, production, and retailing of petroleum products. Its retail business unit markets petrol, diesel, and kerosene, along with automotive engine oils, greases, and Aviation Turbine Fuel (ATF). 

Before putting your money in stocks, it is important to study the financial health and prospects of a company. Bharat Petroleum Corporation has a TTM P/E of 3.32, a sector P/E of 8.51, and a dividend yield of 4.00%. 

A recent report from The Economic Times states that BPCL offers the largest margin of safety when compared to its peak cycle multiple.  In a nutshell, BPCL is performing well. 

The Bottom Line

Bharat Petroleum Corporation Limited (BPCL) stands as a strong contender in India’s petroleum sector, showcasing impressive financial performance and strategic growth plans. With record profits and significant government investments, BPCL has solidified its position as a leading energy company.

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Karan Singh
Karan Singh
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