Unlock the secrets behind BPCL Share Price with our comprehensive analysis. Explore the factors influencing its value, its fundamental and technical performance, and gain valuable insights for informed investment decisions.
Bharat Petroleum Corporation Limited (BPCL) is a leading player in India’s oil and gas sector, widely recognized for its extensive refining, distribution, and marketing operations. As a public sector undertaking, BPCL’s shares are actively traded on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). BPCL share price is influenced by several factors, including fluctuations in crude oil prices, government regulations, and global economic trends. Company performance, strategic investments, and market sentiment also play significant roles. Notably, BPCL’s investments in refining capacity and petrochemical projects, along with its focus on sustainability and diversification into natural gas and renewable energy, are closely watched by investors.
For investors, BPCL shares represent a blend of stability and growth potential. The company’s Maharatna status highlights its strong market position and operational efficiency. BPCL’s consistent profitability and regular dividend payouts make it an appealing choice for both short-term and long-term investors. BPCL share price reflects its strategic initiatives and market dynamics. Staying informed about industry trends and company developments is crucial for investors looking to make informed decisions regarding BPCL share price.
Table of Contents
Bharat Petroleum Corporation Limited (BPCL), a prominent Indian public sector undertaking, operates under the Ministry of Petroleum and Natural Gas, Government of India. BPCL’s journey began with the Rangoon Oil and Exploration Company during the colonial era, evolving into the Burmah Oil Company, and eventually forming the Burmah-Shell Oil Storage and Distributing Company of India Limited through a strategic partnership in 1928.
In the mid-20th century, India’s government nationalized several foreign oil companies. On January 24, 1976, Burmah Shell was nationalized to form Bharat Refineries Limited, and on August 1, 1977, it was renamed Bharat Petroleum Corporation Limited. BPCL became the first refinery to process crude from the Mumbai High Field.
In 2003, a legal challenge halted the government’s privatization plans for BPCL, necessitating parliamentary approval to amend nationalization acts. In 2016, the Repealing and Amending Act was passed, enabling BPCL to gain Maharatna status in 2017, recognizing its market capitalization and consistent profitability.
BPCL operates three major refineries in Bina, Kochi, and Mumbai. The company announced a $4.05 billion investment in 2021 to boost petrochemical capacity and refining efficiencies. BPCL’s commitment to sustainability includes initiatives to reduce carbon emissions and promote renewable energy sources.
As a key player in India’s energy security, BPCL ensures a stable fuel supply, supporting economic growth. The company also engages in extensive CSR activities, focusing on education, healthcare, and environmental conservation. Embracing digital transformation, BPCL has adopted advanced technologies to enhance operations and customer service.
Looking forward, BPCL aims to expand its global presence and diversify into renewable energy, positioning itself as a leader in the evolving energy sector.
Subsidiaries of BPCL
Bharat Oman Refineries Limited (BORL): BORL operates the Bina Refinery in Madhya Pradesh and is a joint venture between BPCL and Oman Oil Company. It boosts BPCL’s refining capacity and market reach.
Numaligarh Refinery Limited (NRL): NRL, located in Assam, addresses the petroleum needs of northeastern India. BPCL’s stake in NRL strengthens its refining capabilities and regional footprint.
Bharat PetroResources Limited (BPRL): BPRL focuses on hydrocarbon exploration and production. With operations in Brazil, Mozambique, Indonesia, and Australia, BPRL is crucial for BPCL’s strategy to secure energy resources.
Bharat Gas Resources Limited (BGRL): BGRL handles the sourcing, distribution, and marketing of natural gas and LNG. It supports BPCL’s commitment to providing cleaner energy solutions.
Petronet CCK Limited: Petronet CCK Limited specializes in pipeline transportation of petroleum products, ensuring efficient delivery and supporting BPCL’s logistics.
Bharat Stars Services Private Limited (BSSPL): BSSPL offers integrated aviation fuel services at various airports, enhancing BPCL’s presence in the aviation sector.
Matrix Bharat Pte. Ltd.: Matrix Bharat Pte. Ltd., based in Singapore, engages in international trading of crude oil and petrochemical products, aiding BPCL’s global trading operations.
Kochi Salem Pipeline Private Limited (KSPPL): KSPPL operates a pipeline from Kochi to Salem, enhancing BPCL’s logistics capabilities.
Share Holding Pattern of BPCL
These figures represent significant actions taken by a company that directly influence shareholder value. They signify material changes within the company and have an impact on its stakeholders:
- Promoter Shareholding: 52.98%
- FII (Foreign Institutional Investor) Shareholding: 16.80%
- DII (Domestic Institutional Investor) Shareholding: 12.16%
- MF (Mutual Fund) Shareholding: 9.14%
- Retail and Others: 8.93%
The fundamental analysis of Bharat Petroleum Corporation Limited (BPCL) provides valuable insights into the company’s financial health and operational efficiency over the past four fiscal years. By examining key ratios across profitability, liquidity, solvency, efficiency, valuation, and growth, we can gain a comprehensive understanding of BPCL’s performance trajectory.
Fundamental Analysis of BPCL | ||||
Ratio | March 2024 | March 2023 | March 2022 | March 2021 |
Profitability Ratio | ||||
Gross Profit Margin | 14.55% | 8.45% | 12.51% | 14.49% |
Net Profit Margin | 5.99% | -0.0129% | 2.93% | 7.67% |
Return on Equity (ROE) | 35.51% | -0.114% | 19.55% | 32.95% |
Liquidity Ratio | ||||
Current Ratio | 0.812 | 0.748 | 0.746 | 0.913 |
Quick Ratio (Acid-Test Ratio) | 0.283 | 0.240 | 0.239 | 0.444 |
Solvency Ratio | ||||
Debt to Equity Ratio | 0.608 | 1.14 | 1.08 | 0.876 |
Interest Coverage Ratio | 9.47 | 1.17 | 6.57 | 14.20 |
Efficient Ratio | ||||
Inventory Turnover Ratio | 9.46 | 12.30 | 11.30 | 8.00 |
Account Receivable Turnover Ratio | 59.48 | 70.38 | 42.21 | 31.62 |
Valuation Ratio | ||||
Price to earning Ratio (P/E) | 4.78 | 34.40 | 6.54 | 5.23 |
Price to Book Ratio (P/B) | 1.70 | -0.0391 | 1.28 | 1.72 |
Growth Ratio | ||||
Earning per Share (EPS) Growth | 126.08 | 10.01 | 54.91 | 81.87 |
Revenue Growth | 450,425.61 | 475,308.66 | 364,689.19 | 236,889.57 |
Profitability Ratios
Gross Profit Margin:
In March 2024, BPCL’s gross profit margin stood at 14.55%, a significant increase from 8.45% in March 2023. This rebound from a lower margin indicates improved cost management and possibly higher revenues. The margin in March 2022 was 12.51%, showing variability influenced by market conditions and operational efficiencies. The margin was highest in March 2021 at 14.49%, almost matching the 2024 level, suggesting a return to optimal performance levels after a dip in 2023.
Net Profit Margin:
BPCL’s net profit margin exhibited considerable volatility. It surged to 5.99% in March 2024, a remarkable recovery from a negative -0.0129% in March 2023, indicating a turnaround from losses to profitability. The margin was 2.93% in March 2022 and highest at 7.67% in March 2021, reflecting fluctuating profitability impacted by operational and market challenges.
Return on Equity (ROE):
The ROE for BPCL was impressive at 35.51% in March 2024, significantly up from the negative -0.114% in March 2023. This recovery demonstrates enhanced profitability and efficient equity utilization. In March 2022, the ROE was 19.55%, and it was notably high at 32.95% in March 2021, indicating strong historical returns on shareholders’ equity.
Liquidity Ratios
Current Ratio:
BPCL’s current ratio was 0.812 in March 2024, up slightly from 0.748 in March 2023, suggesting a modest improvement in its ability to cover short-term liabilities. The ratio was relatively stable in March 2022 at 0.746 but higher at 0.913 in March 2021, indicating better short-term financial health in the earlier period.
Quick Ratio (Acid-Test Ratio):
The quick ratio improved to 0.283 in March 2024 from 0.240 in March 2023, reflecting a better position in meeting immediate obligations without relying on inventory. The ratio was 0.239 in March 2022 and 0.444 in March 2021, showing a stronger liquidity position in the earlier year.
Solvency Ratios
Debt to Equity Ratio:
BPCL’s debt to equity ratio decreased to 0.608 in March 2024 from 1.14 in March 2023, indicating a significant reduction in leverage. The ratio was 1.08 in March 2022 and 0.876 in March 2021, showing varying levels of debt relative to equity over the years.
Interest Coverage Ratio:
The interest coverage ratio improved markedly to 9.47 in March 2024 from 1.17 in March 2023, signifying enhanced ability to meet interest obligations. The ratio was 6.57 in March 2022 and highest at 14.20 in March 2021, indicating a strong capacity to cover interest expenses during that period.
Efficiency Ratios
Inventory Turnover Ratio:
The inventory turnover ratio was 9.46 in March 2024, down from 12.30 in March 2023, suggesting slower inventory movement. The ratio was 11.30 in March 2022 and 8.00 in March 2021, reflecting varying efficiency in inventory management over the years.
Accounts Receivable Turnover Ratio:
BPCL’s accounts receivable turnover ratio decreased to 59.48 in March 2024 from 70.38 in March 2023, indicating slower collection of receivables. The ratio was 42.21 in March 2022 and 31.62 in March 2021, showing improved efficiency in earlier years.
Valuation Ratios
Price to Earnings Ratio (P/E):
The P/E ratio was 4.78 in March 2024, significantly lower than 34.40 in March 2023, reflecting a more attractive valuation relative to earnings. The ratio was 6.54 in March 2022 and 5.23 in March 2021, indicating varying investor sentiment and market valuation.
Price to Book Ratio (P/B):
BPCL’s P/B ratio was 1.70 in March 2024, up from a negative -0.0391 in March 2023, signifying improved market valuation relative to book value. The ratio was 1.28 in March 2022 and 1.72 in March 2021, showing stable valuation levels.
Growth Ratios
Earnings per Share (EPS) Growth:
The EPS growth was an astounding 126.08 in March 2024, up from 10.01 in March 2023, highlighting significant profitability improvement. The growth was 54.91 in March 2022 and 81.87 in March 2021, reflecting fluctuating but positive earnings growth.
Revenue Growth:
BPCL’s revenue growth was 450,425.61 in March 2024, a slight decline from 475,308.66 in March 2023, but up from 364,689.19 in March 2022 and 236,889.57 in March 2021, indicating a strong upward trajectory in revenue over the years.
The fundamental analysis of BPCL reveals a company that has experienced significant volatility but also notable recovery and growth. The profitability ratios show a strong return to profitability, especially in 2024. Liquidity ratios indicate a stable but cautious approach to short-term obligations, while solvency ratios reflect a substantial reduction in leverage and improved interest coverage. Efficiency ratios suggest varying levels of operational efficiency, with some room for improvement in inventory and receivable management. Valuation ratios highlight BPCL’s attractiveness from an investment perspective, particularly in 2024. Growth ratios underscore robust earnings and revenue growth, positioning BPCL as a compelling investment opportunity in the dynamic oil and gas sector.
Technical Analysis of BPCL Share Price
Technical analysis of BPCL Share Price involves evaluating price movements and trading volumes to forecast future price movements. Technical analysis depends on charts and statistical indicators. analysts use various techniques, such as trend analysis, chart patterns, and technical indicators like moving averages or relative strength index (RSI), to identify potential buying or selling opportunities for BPCL Share Price. The main goal of technical analysis of BPCL Share Price is to predict future price movements based on historical data and market psychology, helping investors make informed decisions about when to enter or exit trades. So, bellow we are explaining Various techniques as of 21st May 2024 for technical analysis of BPCL Share.
Price Action
Price action and price level of BPCL Share Price | |||
Price action | Daily Timeframe | Weekly Timeframe | Monthly Timeframe |
Candlestick | Strong Bullish Candlestick pattern. | Bullish Breakout Candlestick pattern. | Bullish Candlestick pattern. |
Chart Pattern | Symmetrical Triangle Pattern | Symmetrical Triangle Pattern | strong bullish momentum |
Price Support Level | 600-620 | 580-600 | 560-580 |
Price Level | 642 is Current BPCL Share Price | 52 weeks High 687.95 | 52 weeks low 331.45 |
The BPCL Share Price has exhibited a dynamic and bullish trend across various timeframes. Here, we analyse the price action, chart patterns, and support levels on daily, weekly, and monthly charts to understand the current market sentiment and potential future movements.
Daily Timeframe Analysis
On the daily timeframe, the BPCL Share Price has shown a strong bullish candlestick pattern. This bullish momentum has broken through a significant resistance line in the price action pattern, indicating a decisive move upwards. Currently, the BPCL Share Price is consolidating between 560 and 670, suggesting a period of accumulation where buyers and sellers are evenly matched. This consolidation phase often precedes a significant price move, as market participants await further catalysts to drive the price direction.
The symmetrical triangle pattern observed on the daily chart highlights a period of price compression, typically leading to a breakout. In this case, the breakout occurred at the upper level of 640, indicating strong buying interest and the potential for continued upward momentum. The current support level on the daily chart is between 600 and 620, providing a cushion for the price in case of short-term pullbacks.
Weekly Timeframe Analysis
On the weekly timeframe, the BPCL Share Price has also shown a bullish breakout candlestick pattern. This pattern indicates that the share price has broken out of a previous chart pattern after experiencing strong selling rejection in previous weeks. The breakout is accompanied by decent trading volume, which adds credibility to the price movement and suggests that it is supported by substantial market interest.
The symmetrical triangle pattern on the weekly chart indicates a longer-term period of consolidation and price compression. The BPCL Share Price has been rallying from a low of 340, and after a period of price and time correction, it is poised for a reversal. The support level on the weekly chart is between 580 and 600, which is a crucial area for maintaining the bullish trend.
Monthly Timeframe Analysis
On the monthly timeframe, the BPCL Share Price has shown a consistent bullish candlestick pattern, reflecting strong upward momentum. In January, the share price broke out from a falling wedge pattern, a bullish reversal pattern that often leads to significant price increases. Over the last two months, the BPCL Share Price formed doji candles, indicating indecision in the market. However, the overall trend remains bullish.
The monthly chart shows a strong bullish momentum from the previous year, suggesting that this rally is likely to continue. The support level on the monthly chart is between 560 and 580, providing a solid foundation for the share price to build upon as it seeks higher levels.
Current Price Level and Key Statistics
As of May 21st, 2024, the BPCL Share Price is at 642. This price level is significant as it represents a recent high and reflects the strong bullish sentiment in the market. The 52-week high for BPCL is 687.95, indicating the upper resistance level that the price needs to break to continue its upward trajectory. Conversely, the 52-week low is 331.45, highlighting the significant gains the share price has made over the past year.
The BPCL Share Price analysis across daily, weekly, and monthly timeframes reveals a robust bullish trend supported by strong candlestick patterns and symmetrical triangle breakouts. The current consolidation phase between 560 and 670 suggests that the market is gathering momentum for the next significant move. Key support levels across timeframes provide a safety net for potential pullbacks, while the bullish breakout patterns indicate continued investor confidence.
Investors should closely monitor the support levels and volume trends to gauge the sustainability of the current rally. Given the strong performance and bullish patterns, the BPCL Share Price is well-positioned for further gains, making it an attractive option for traders and long-term investors alike. Staying informed about market developments and technical indicators will be crucial in making well-timed investment decisions regarding BPCL shares.
Indicators Use for Technical Analysis
Bolinger Band (BB):
Bolinger Band Price level in BPCL Share Price | |||
| Upper Band | Median | Lower Band |
Bolinger Band | 642.8 | 614.5 | 586.5 |
As of May 21st, 2024, the BPCL Share Price exhibits specific levels within the Bollinger Bands. The Upper Band stands at 642.8, indicating a potential resistance level where the price might face selling pressure. The Median, or middle band, is at 614.5, serving as a short-term support level. This suggests that if the price falls, it may find support around this mark. The Lower Band, situated at 586.5, functions as both short-term and medium-term support, implying that if the price experiences a significant decline, it could stabilize around this level. Monitoring the price movement relative to these Bollinger Band levels can provide insights into potential price reversals or continuation of the current trend in the BPCL Share Price.
Moving Average (MA):
Moving Average price level in daily candlestick of BPCL Share Price | ||
Moving Average | 100 Day | 200 Day |
Simple Moving Average (SMA) | 571.6 | 474.1 |
Exponential Moving Average (EMA) | 566.6 | 507 |
As of May 21st, 2024, the BPCL Share Price on the daily candlestick chart shows significant levels based on moving averages. The 100-day Simple Moving Average (SMA) is at 571.6, serving as both short-term and medium-term support. This indicates that the price tends to find stability around this level, potentially acting as a cushion against downward movements. Additionally, the 200-day SMA stands at 474.1, functioning as medium and long-term support. This level suggests a more sustained support zone, indicating that over a longer period, the price tends to gravitate towards this average.
The Exponential Moving Average (EMA) also provides insights into price levels. The 100-day EMA is at 566.6, serving as short-term and medium-term support similar to the SMA. This level suggests a comparable support zone for the BPCL Share Price. Furthermore, the 200-day EMA stands at 507, indicating medium and long-term support. This suggests a more extended support period compared to the shorter-term EMA, emphasizing its significance in guiding long-term price movements. Investors often use these moving averages to gauge potential support and resistance levels, aiding in decision-making regarding entry and exit points in the market.
Conclusion
Based on the analysis, BPCL appears to be a favourable investment choice. Its strong market position, operational efficiency, and growth prospects make it appealing to investors. The fundamental analysis reveals improving profitability and financial health, while the technical analysis indicates a bullish trend with support from various indicators. Key support and resistance levels provide valuable guidance for investors to manage risk effectively. Additionally, monitoring market dynamics and staying informed about industry trends is crucial for making informed investment decisions. Overall, BPCL presents a compelling opportunity for both short-term traders and long-term investors, but careful consideration and ongoing monitoring are advised to capitalize on potential gains and mitigate risks.
FAQs
- What is BPCL’s core business?
BPCL is primarily engaged in the refining, distribution, and marketing of petroleum and petrochemical products.
- Where are BPCL’s refineries located?
BPCL operates major refineries in Bina, Kochi, and Mumbai, strategically positioned across India.
- How are BPCL shares traded?
BPCL shares are actively traded on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India.
- What factors influence BPCL share price?
BPCL share price is influenced by factors such as crude oil prices, government policies, global economic trends, company performance, and market sentiment.
- Does BPCL offer dividends to shareholders?
Yes, BPCL regularly distributes dividends to its shareholders based on its financial performance and dividend policy.
- What is BPCL’s Maharatna status?
BPCL holds Maharatna status, which recognizes its significant market capitalization, operational efficiency, and consistent profitability among government-owned entities in India.
- How does BPCL contribute to sustainability?
BPCL is committed to sustainability through initiatives aimed at reducing carbon emissions, promoting renewable energy, and ensuring responsible resource management.
- What are BPCL’s subsidiary companies?
BPCL has subsidiaries such as Bharat Oman Refineries Limited, Numaligarh Refinery Limited, Bharat PetroResources Limited, and others, involved in various aspects of the energy sector.
- What is BPCL’s current debt-to-equity ratio?
BPCL’s current debt-to-equity ratio is [insert ratio here], indicating its leverage position relative to shareholders’ equity.
- How can investors stay updated on BPCL’s performance?
Investors can monitor BPCL’s financial reports, stock performance, and industry news through its investor relations website, regulatory filings, and financial news outlets.
