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BPCL - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 4.3
| Stock Code | BPCL | Market Cap | 1,58,768 Cr. | Current Price | 366 ₹ | High / Low | 382 ₹ |
| Stock P/E | 7.24 | Book Value | 211 ₹ | Dividend Yield | 2.72 % | ROCE | 19.6 % |
| ROE | 18.7 % | Face Value | 10.0 ₹ | DMA 50 | 355 ₹ | DMA 200 | 330 ₹ |
| Chg in FII Hold | 1.08 % | Chg in DII Hold | -0.87 % | PAT Qtr | 6,443 Cr. | PAT Prev Qtr | 6,124 Cr. |
| RSI | 53.0 | MACD | 1.83 | Volume | 42,46,801 | Avg Vol 1Wk | 55,27,582 |
| Low price | 234 ₹ | High price | 382 ₹ | PEG Ratio | 0.55 | Debt to equity | 0.24 |
| 52w Index | 89.4 % | Qtr Profit Var | 169 % | EPS | 47.1 ₹ | Industry PE | 11.3 |
📊 Core Financials
- Quarterly PAT improved from 6,124 Cr. to 6,443 Cr. (+169% YoY growth).
- ROE at 18.7% and ROCE at 19.6% indicate strong efficiency and profitability.
- Debt-to-equity ratio of 0.24 shows low leverage and healthy balance sheet.
- Dividend yield at 2.72% provides attractive shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 7.24 vs Industry PE of 11.3 → Undervalued compared to peers.
- P/B Ratio: Current Price / Book Value ≈ 1.73 → Fairly priced relative to assets.
- PEG Ratio: 0.55 → Strong earnings growth potential at reasonable valuation.
- Intrinsic Value Zone: ₹340–₹370 (near DMA 200 and current levels).
🏭 Business Model & Competitive Advantage
- Core operations in refining, marketing, and distribution of petroleum products.
- Strong government backing as a PSU ensures stability and strategic importance.
- Competitive advantage lies in scale, distribution network, and integration across energy value chain.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation between ₹340–₹370.
- Long-Term Holding: Strong candidate for long-term investors seeking stable dividends and undervalued PSU exposure.
✅ Positive
- Strong profitability with ROE and ROCE above 18%.
- Low debt-to-equity ratio (0.24).
- Attractive dividend yield of 2.72%.
- Undervalued compared to industry peers.
⚠️ Limitation
- Dependence on global crude oil price volatility.
- Government regulations may impact margins.
- Decline in DII holdings (-0.87%).
📉 Company Negative News
- Domestic institutional investors reduced holdings.
- Exposure to cyclical oil price fluctuations.
📈 Company Positive News
- Strong quarterly profit growth (PAT 6,443 Cr.).
- Increase in FII holdings (+1.08%).
- Stock trading near 52-week high (89.4% of range).
🌐 Industry
- Oil & gas sector remains cyclical, influenced by crude prices and global demand.
- Industry PE at 11.3 suggests moderate valuation compared to BPCL’s discount.
- Government initiatives in energy transition may reshape long-term outlook.
🔎 Conclusion
- BPCL is financially strong, undervalued, and offers attractive dividends.
- Best suited for long-term investors seeking stable PSU exposure with growth potential.
- Accumulation recommended near ₹340–₹370 for favorable risk-reward balance.
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