⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BPCL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | BPCL | Market Cap | 1,31,826 Cr. | Current Price | 304 ₹ | High / Low | 392 ₹ |
| Stock P/E | 5.36 | Book Value | 211 ₹ | Dividend Yield | 5.76 % | ROCE | 19.6 % |
| ROE | 18.7 % | Face Value | 10.0 ₹ | DMA 50 | 354 ₹ | DMA 200 | 344 ₹ |
| Chg in FII Hold | 1.93 % | Chg in DII Hold | -1.75 % | PAT Qtr | 7,545 Cr. | PAT Prev Qtr | 6,443 Cr. |
| RSI | 24.2 | MACD | -17.5 | Volume | 96,58,516 | Avg Vol 1Wk | 1,34,22,782 |
| Low price | 262 ₹ | High price | 392 ₹ | PEG Ratio | 0.41 | Debt to equity | 0.24 |
| 52w Index | 32.1 % | Qtr Profit Var | 62.3 % | EPS | 53.8 ₹ | Industry PE | 13.7 |
📊 Financials
- Revenue Growth: Strong, PAT rose from 6,443 Cr. to 7,545 Cr. (+62.3% QoQ)
- Profit Margins: Robust, EPS at 53.8 ₹
- Debt Ratios: Debt-to-Equity 0.24, manageable
- Cash Flows: Healthy, supported by strong profitability
- Return Metrics: ROE 18.7%, ROCE 19.6% — solid efficiency
💹 Valuation
- P/E Ratio: 5.36 (well below Industry PE 13.7, undervalued)
- P/B Ratio: ~1.44 (reasonable, reflects fair valuation)
- PEG Ratio: 0.41 (very attractive, undervalued relative to growth)
- Intrinsic Value: Current price (304 ₹) below DMA 50 (354 ₹) & DMA 200 (344 ₹), showing weakness and potential entry opportunity
🏢 Business Model & Competitive Advantage
- Leading oil & gas PSU with refining, marketing, and distribution operations
- Strong government backing ensures stability
- Competitive advantage in scale, distribution network, and integrated operations
- High dividend yield (5.76%) adds investor appeal
📈 Entry Zone Recommendation
- Entry Zone: 280–310 ₹ (near oversold RSI at 24.2)
- Long-Term Holding: Attractive due to undervaluation, strong fundamentals, and high dividend yield
✅ Positive
- Low P/E ratio compared to industry
- Strong quarterly profit growth (+62.3%)
- High dividend yield (5.76%)
- FII holding increased (+1.93%)
⚠️ Limitation
- Stock trading below DMA 50 & 200, showing technical weakness
- DII holding decreased (-1.75%)
- Exposure to crude oil price volatility
📉 Company Negative News
- DII holding decreased (-1.75%)
- Stock under pressure due to weak technical indicators
📈 Company Positive News
- Strong quarterly PAT growth
- FII holding increased (+1.93%)
- High dividend yield supports investor confidence
🏭 Industry
- Oil & gas sector remains cyclical, influenced by global crude prices
- Industry PE at 13.7, BPCL trades at a discount
🔎 Conclusion
BPCL is a fundamentally strong PSU with robust profitability, attractive dividend yield, and government backing. The stock is undervalued with a P/E of 5.36 and PEG of 0.41, making it appealing for long-term investors. Entry around 280–310 ₹ is favorable, though short-term technical weakness persists. Long-term holding is recommended for stable returns and dividend income.