The Bharat Petroleum Corporation Limited or BPCL belongs to the Nifty 50 group of companies. For this reason, fluctuations in BPCL share price affect the benchmark index. Founded in 1952, Bharat Petroleum Corporation Limited is a large-cap company in the Indian petroleum sector. Bharat Petroleum Corporation Limited has a long history associated with it.
BPCL Share Price Graph
About the Company
Before independence, Burmah Oil Company, which later formed Burmah Shell Group of Companies, were active in the search and extraction activity of crude oil in India. It was also doing refining activities of crude oil from the start. Later in 1976, the Indian government took over the company and named it Bharat Refineries Limited. In 1977, the Indian government again changed its name to Bharat Petroleum Corporation Limited.
BPCL was always indigenous in its approach. It was the first company in India to extract crude oil from under the sea. Bombay High is an example of it which extracts oil from under the seabed and sends it to the refinery for producing fuel.
The Bharat Petroleum Corporation Limited earns its revenue by marketing petroleum products. It extracts crude which is sent to refineries for the production of different petroleum products like ATF (Aviation Turbine Fuel), Kerosene, Diesel, Petrol, Naptha, Petroleum Jelly, Mobil Oil and Grease. The company distributes the products through a network of 1007 kerosene dealers and 6553 retail outlets. A strong backup of exploration and research activity supports the company.
In addition, it sells Liquid Petroleum Gas (LPG) to a vast 25 million households through its subsidiary Bharatgas. Bharatgas operates through a network of 2137 distributors of LPG across the country.
Company Summary
Bharat Petroleum Corporation Ltd. more commonly known as BPCL. It is a Large Cap company and the current market cap is Rs 58830.13 crores. The company operates in the Indian Petroleum sector.
BPCL earns its revenue mostly from the sale of petroleum products. But there are other sources of earning as well. The audited financial report of Bharat Petroleum Corporation Ltd. for the year ended 31 March 2018 shows that the company has earned Rs 23723.46 crores from the sales of petroleum products amounting to 98.02% of total sales. Earned Rs 3423.19 crores from the sales of Oil Crude amounting to 1.41% of total sales value, Rs 1172.83 crores earned from the subsidy (0.48%) of total sales other operating revenue contributed Rs 188.34 crores ( 0.07% of total sales ).
For the quarter ended 30 June 2018, the company reported a standalone sales of Rs 71696.73 crores which is up by 9.90% from the last quarter (ended in March 2018) sales of Rs 65239.31 crores and sales increased by 25.51% from the sales of a similar quarter of the previous year which was Rs 57125.80 crores. In the second quarter of this financial year, the company reported a net profit of Rs 2293.26 crores.
Client Base
The company has two modern refineries in Kochi and Mumbai.
BPCL supplies naphtha to AP Transco of Andhra Pradesh for its operation of four power plants. It is committed to supplying a sufficient amount of naphtha to the company as and when necessary.
BPCL also has an 8000-strong customer base in the industrial sector. It has a big fleet of 5200 tankers which are constantly monitored by the company through a GPS tracker. This advanced step has increased its revenue by reducing wastage and theft.
The company also has a business tie-up with big food chain companies like Pizza Hut, Subway, Mcdonalds, Cafe Coffee Day, and Nirulas which also compounds its revenue.
Company Financials for Analyzing BPCL Share Price
As per the graph, BPCL share price is Rs 673.70 (as of 16.06.17, EOD) in BSE. As per the latest data on BPCL share price, the standalone basis P/E ratio is 12.12 versus the average industry PE of 12.89, and the EPS is Rs 55.59. The face value of a share is Rs 10. The Book Value per share is Rs 177.59. The price over book value ratio or Price/BV is 1.48. The Dividend yield is 8.22%. The 52 weeks high price is Rs 551.55 and 52 weeks low is Rs 238.55.
With the recent turmoil in the international crude market and the rising price of the crude has impacted the financials of the company. India being basically an oil importing country, the companies operating in the Indian petroleum sector have to heavily depend on crude import. Thus the price of international crude oil makes a direct impact on petroleum companies operating in India. BPCL is basically an OMC or oil marketing company. Higher crude price increases the under-recovery of the company causing a decrease in profit margin and a fall in the share price.
Shareholding Pattern
The shareholding pattern of the company currently has different shareholders in the manner stated below.
- The promoters and promoter group of the company hold 1,169,945,869 nos of shares. This is equivalent to 53.93% of total shares.
- The foreign institutions or FIIs hold 367,044,437 nos of shares amounting to 16.92% of total shares.
- Others hold 253,641,239 nos or shares or 11.69% of total shares.
- The nationalized banks and mutual funds together hold 161,302,676 nos of shares or 7.44% of total shares.
- Other financial institutions hold 136,594,042 nos of shares amounting to 6.30% of total shares.
- The general public holds 62,057,756 nos of shares which is equivalent to 2.86% of total shares.
- In addition, the Central Government itself hold a minor stake in this company. A total number of 18,666,666 shares are held by them which is equivalent to 0.86% of total shares.
The Top Management
The top management of the company includes Dr Tamilsai Sundarrajan, Dr K Ellangovan, Mr Arun K Singh, Mr Deepak Bhojwani, Mr D Rajkumar, Mr G C Nanda, Mr K Padmakar, Mr R K mangal, Mr R Ramachandran, Mr V S Oberoi, Mr Rajiv Bansal, Mr V V Sharma, Mrs J S Sundharam.
BPCL has appointed M/S CVK & Associates as the auditor.
At the end of September 2018, the company has a total of 2,169,252,744 nos of shares outstanding.
Final Thoughts about BPCL Share Price
In conclusion, the price of BPCL shares has experienced fluctuations over time. It seems to have found a level of stability in recent months. After analyzing data, news and historical figures it becomes evident that investors should closely monitor this company if they wish to capitalize on long-term growth. With aspects and a diversified portfolio, BPCL presents itself as an attractive investment opportunity, for individuals who possess market knowledge and have access, to research resources.