In Monday’s trading session, the shares of one of the leading PSU stocks specializing in the refining, marketing, and distribution of petroleum products in focus following plans to invest $11 billion (Rs. 1,100 crores) in the southern Andhra Pradesh state for a new refinery and petrochemical project.
Price action
With a market capitalization of 1,27,313 Crores on Monday, the shares of Bharat Petroleum Corporation Limited is down by 0.19 percent making a low of Rs 289.75 compared to its previous closing price of Rs 293.55.
What Happened
Bharat Petroleum Corporation Limited (BPCL) specializing in the refining, marketing, and distribution of petroleum products.
BPCL Ltd. plans to invest $11 billion (Rs. 1,100 crore) in a new refinery and petrochemical project in southern Andhra Pradesh to address the growing fuel demand in the world’s fastest-growing major economy, according to its chairman
He also stated that BPCL has started pre-project work, including land acquisition, to build at least a 9 million metric ton per year (TPY) refinery and ethylene cracker in Andhra Pradesh.
About the company
Bharat Petroleum Corporation Limited (BPCL) is one of India’s largest and most diversified Public Sector Undertakings (PSUs) in the oil and gas industry. Founded in 1952, BPCL is primarily engaged in the refining, marketing, and distribution of petroleum products.
The company operates two major refineries, located in Mumbai and Kochi, with a combined refining capacity of over ~35 million metric tons per year. BPCL’s products include a wide range of fuels, lubricants, and petrochemicals that cater to both domestic and international markets.
BPCL has been at the forefront of technological innovation, focusing on enhancing the efficiency of its operations through automation, digitalization, and research and development. The company is committed to sustainability and energy transition, making strides in renewable energy, including investments in solar power, biofuels, and hydrogen technologies.
Refining capacity
BPCL has a total refining capacity of 35.3 MMTPA, with refineries in Mumbai (12 MMTPA), Kochi (15.5 MMTPA), and Bina, Madhya Pradesh (7.8 MMTPA). These facilities collectively account for 14-15% of India’s total refining capacity.
Presence Across Value Chain
BPCL has a strong presence across multiple value chains. It operates 82 retail depots and around 20,000 retail outlets in India, holding a ~26% market share in the domestic petroleum market. In LPG, it owns 54 bottling plants and serves over 6,200 distributors, with a 27% market share and a customer base of ~9 crore.
BPCL serves 8,000+ industrial and commercial customers and operates 56 aviation service stations, holding a 21% market share in Aviation Turbine Fuel (ATF). Through its MAK Lubricants brand, it offers over 400 grades, capturing ~25% of the lubricants market. BPCL also serves 55+ major LNG customers through its subsidiary, Bharat Gas Resources Ltd
Financials
The company’s revenue declined by 0.22 percent from Rs 1,03,719 crore to Rs 1,03,482 crore in Q2FY24-25. Meanwhile, Net profit fell drastically from Rs 8,243.55 crores to Rs 2,297.23 crore during the same period.
Key Financial ratios
Bharat Petroleum Corporation Limited has an impressive Return on Equity (RoE) of 17 percent and a Return on Capital Employed (RoCE) of 15.7 percent. Furthermore, the company’s debt-to-equity ratio is 0.76.
Written by Sridhar J
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