BPCL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | BPCL | Market Cap | 1,56,162 Cr. | Current Price | 359 ₹ | High / Low | 388 ₹ |
| Stock P/E | 6.35 | Book Value | 211 ₹ | Dividend Yield | 4.87 % | ROCE | 19.6 % |
| ROE | 18.7 % | Face Value | 10.0 ₹ | DMA 50 | 360 ₹ | DMA 200 | 339 ₹ |
| Chg in FII Hold | 1.93 % | Chg in DII Hold | -1.75 % | PAT Qtr | 7,545 Cr. | PAT Prev Qtr | 6,443 Cr. |
| RSI | 48.2 | MACD | -1.17 | Volume | 74,52,928 | Avg Vol 1Wk | 1,21,06,251 |
| Low price | 234 ₹ | High price | 388 ₹ | PEG Ratio | 0.48 | Debt to equity | 0.24 |
| 52w Index | 81.3 % | Qtr Profit Var | 62.3 % | EPS | 53.8 ₹ | Industry PE | 9.25 |
💹 Financials: Bharat Petroleum Corporation Ltd (BPCL) demonstrates strong profitability with ROE at 18.7% and ROCE at 19.6%, reflecting efficient capital usage. Debt-to-equity at 0.24 indicates moderate leverage but manageable. Quarterly PAT rose from 6,443 Cr. to 7,545 Cr., showing a robust 62.3% growth, highlighting strong earnings momentum. EPS at 53.8 ₹ supports healthy cash flows.
📊 Valuation: The stock trades at a P/E of 6.35, well below the industry average of 9.25, suggesting undervaluation. The P/B ratio is ~1.7 (359/211), which is reasonable. PEG ratio of 0.48 indicates attractive valuation relative to growth prospects. Dividend yield at 4.87% is strong, offering consistent income return to shareholders.
🏢 Business Model & Advantage: BPCL operates in the oil & gas sector, focusing on refining, marketing, and distribution of petroleum products. Its competitive advantage lies in government backing, extensive distribution network, and strong brand presence. The company benefits from steady demand in energy and fuel consumption across India.
📈 Overall Health: Financially robust with strong profitability, moderate debt, and attractive valuations. RSI at 48.2 suggests neutral momentum, while MACD at -1.17 indicates mild bearishness in the short term. Long-term fundamentals remain solid, supported by energy demand and government policies.
🎯 Entry Zone: Attractive entry around 340–360 ₹ range, near DMA 200 support levels. Current price of 359 ₹ is reasonable given strong earnings and dividend yield. Long-term investors can accumulate and hold, as BPCL offers value and stability.
Positive
- Strong ROE (18.7%) and ROCE (19.6%) indicate efficient capital use.
- Quarterly PAT growth of 62.3% shows robust earnings momentum.
- Low P/E (6.35) compared to industry average (9.25) suggests undervaluation.
- Dividend yield of 4.87% provides attractive income return.
- FII holdings increased by 1.93%, reflecting foreign investor confidence.
Limitation
- Moderate debt-to-equity ratio (0.24) adds some leverage risk.
- DII holdings decreased by -1.75%, showing reduced domestic institutional support.
- Exposure to global crude price volatility impacts margins.
Company Negative News
- DII holdings declined by -1.75%, reflecting cautious stance by domestic institutions.
- Short-term technical indicators (MACD negative) suggest mild bearishness.
Company Positive News
- Quarterly PAT rose significantly from 6,443 Cr. to 7,545 Cr.
- FII holdings increased by 1.93%, showing strong foreign investor confidence.
Industry
- Oil & gas industry remains critical to India’s energy needs.
- Industry P/E at 9.25 indicates BPCL trades at a discount compared to peers.
- Sector benefits from government backing and steady demand.
Conclusion
BPCL is a fundamentally strong company with robust profitability, attractive valuations, and high dividend yield. Despite moderate debt and exposure to crude price volatility, the stock offers value at current levels. Entry around 340–360 ₹ is advisable for long-term investors, with potential for sustained growth and stable returns.
I can also prepare a comparative HTML report against HPCL or IOC to highlight BPCL’s relative strengths in profitability and dividend yield.