This PSU stock which deals in the business of refining of crude oil and marketing petroleum products was in focus after clarification on approval for a Joint Venture company IPO.
Price Action
With a market capitalization of Rs. 1,22,670.22 Crores, the shares of Bharat Petroleum Corporation Limited were up by 2 percent touching a day’s high of Rs. 290.55 per share. The stock reiterated from the day’s high and was trading at Rs. 283.05 per share which is 0.58 percent lower from the previous closing price of Rs. 284.70 apiece. The stock has delivered a return of 24 percent over the past year and outperformed the Nifty Index.
What Happened
The company’s stock was in focus after the company released a report on the exchange for Monday’s stock movement dated 06th January 2025 as there was no event or information reported on the mainstream on 5th and 6th of January 2025. However, the company has provided a clarification on the news which reports that Maharashtra Natural Gas Limited (MNGL) which is a joint venture of BPCL, GAIL, and IGL is preparing to list through an Initial Public Offering (IPO) of over Rs.1,000 crore. On this news, the BPCL Board has given in-principle approval for the IPO which is subjected to regulatory and other approvals.
About the Company
Bharat Petroleum Corporation Limited (BPCL) is one of the major Indian public sector oil and gas company which is headquartered in Mumbai. It was established in 1976 and operates three refineries with a total capacity of 36.3 million metric tonnes per annum. BPCL’s business model focuses on refining crude oil, marketing petroleum products, and providing services like cooking gas and aviation fuel. They maintain a vast network of over 15,000 retail outlets across India. They are also investing in renewable energy initiatives and strategic mergers to improve their market presence and operational efficiency while contributing to India’s energy security and economic growth.
Financials & Ratios
Its Revenue from operations declined by 0.25 percent year on year from Rs. 1,03,044 Crores in Q2FY24 to Rs. 1,02,785 Crores in Q2FY25, accompanied by profits of Rs. 8,244 Crores to Rs. 2,297 Crores.
In the return ratios, the return on equity (RoE) in FY24 stood at around 41.59 percent, and the return on capital employed was around 31.30 percent. The debt-to-equity ratio stood around 0.96 as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 52.98 percent in Bharat Petroleum Corporation Limited, Foreign Institutional Investors (FII) holding around 15.40 percent, Domestic Institutional Investors (DII) holding around 22.06 percent, and the public holding around 9.57 percent.
Written by Santhosh S
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