The shares of one of the leading PSU stocks specializing in the refining, marketing, and distribution of petroleum products fell by 4 percent following the Q3 Results with 1.91 percent decline in Income YoY.
Price action
With a market capitalization of 1,20,480 Crores on Thursday, the shares of Bharat Petroleum Corporation Limited is down by 4.5 percent in day’s trade making a low of Rs 270.30 compared to its previous closing price of Rs 277.60.
What Happened
Bharat Petroleum Corporation Limited specializes in the refining, marketing, and distribution of petroleum products have announced their Q3FY25 results
Its Total Income fell by 1.91 percent YoY from Rs.1,15,989 Crores in Q3FY24 to Rs.1,13,773 Crores in Q3FY25 and it grew by 9.94 percent QoQ from Rs. 1,03,482 Crores in Q2FY25 to Rs. 1,13,773 Crores in Q3FY25.
Its Net Profit rose 19.6 percent YoY from Rs. 3,181.42 Crores in Q3FY24 to Rs. 3,805.94 Crores in Q3FY25 and it rose by 65 percent QoQ from Rs. 2,297.23 Crores in Q2FY25 to Rs. 3,805.94 Crores in Q3FY25.
Despite the result, Bharat Petroleum Corporation Limited (BPCL) has announced the formation of a joint venture (JV) with Praj Industries Limited to set up Compressed Bio Gas (CBG) plants across India. The JV will have equal shareholding (50 percent each) between BPCL and Praj.
The project aims to support BPCL’s energy transition and net-zero goals by meeting CBG blending obligations. The agreement is subject to regulatory approvals and further details will be finalized in the definitive agreement.
Along with it BPCL has informed that its board has approved the submission of a development plan to Indonesian regulators for the Nunukan block, aiming to develop oil and gas reserves.
Pending regulatory approval and certain conditions, an estimated investment of USD 121 million will be made. BPCL’s subsidiary, Bharat PetroResources Limited (BPRL), holds a 16.23 percent interest in the block, with Pertamina Hulu Energi Nunukan Inc. as the operator.
What should investors do?
Here is what brokerages said after the Q3 results:
Jefferies downgraded BPCL’s target price to Rs 370 (from Rs 410) due to Q3 earnings missing expectations, though they remain optimistic on the outlook with improving refining margins and potential LPG subsidy relief. However, they highlighted large capital commitments with uncertain payback.
Investec maintained a ‘Sell’ rating with a target price of Rs 250, citing inventory losses and unclear core refining margin performance, though they acknowledged improved marketing margins from recent crude oil and product crack spread corrections.
About the company
Bharat Petroleum Corporation Limited (BPCL) is a leading Indian public sector oil and gas company, operates a vast network of retail outlets and serves customers across India. BPCL also has a significant presence in the exploration and production of oil and gas reserves, both domestically and internationally.
Written by Sridhar J
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