⚠ 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 - Swing Trade Analysis with AI Signals

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Rating: 4.1

Last Updated Time : 05 May 26, 02:59 pm

📊 Swing Trade Rating: 4.1

Stock Code BPCL Market Cap 1,30,893 Cr. Current Price 302 ₹ High / Low 392 ₹
Stock P/E 5.32 Book Value 211 ₹ Dividend Yield 5.80 % ROCE 19.6 %
ROE 18.7 % Face Value 10.0 ₹ DMA 50 318 ₹ DMA 200 333 ₹
Chg in FII Hold 1.11 % Chg in DII Hold -1.04 % PAT Qtr 7,545 Cr. PAT Prev Qtr 6,443 Cr.
RSI 45.1 MACD -1.89 Volume 94,87,235 Avg Vol 1Wk 1,39,19,788
Low price 267 ₹ High price 392 ₹ PEG Ratio 0.41 Debt to equity 0.24
52w Index 28.0 % Qtr Profit Var 62.3 % EPS 53.8 ₹ Industry PE 15.1

Analysis: Bharat Petroleum Corporation Ltd (BPCL) shows strong fundamentals with ROCE at 19.6% and ROE at 18.7%. The company is moderately leveraged with a debt-to-equity ratio of 0.24. The current price of ₹302 is below both the 50 DMA (₹318) and 200 DMA (₹333), suggesting short-term weakness. RSI at 45.1 indicates mildly oversold conditions, while MACD is negative (-1.89), reflecting bearish momentum. However, the stock trades at a very low P/E of 5.32 compared to the industry average of 15.1, making it attractively valued. Strong quarterly PAT growth (+62.3%) and high dividend yield (5.80%) add to its appeal for swing traders.

Optimal Entry Price: ₹295–₹300 (near support zone).

Exit Strategy (if already holding): Consider profit booking near ₹325–₹335 resistance, with a stop-loss below ₹290.

✅ Positive

  • Low P/E (5.32) compared to industry average (15.1), making it undervalued.
  • Strong quarterly PAT growth from ₹6,443 Cr. to ₹7,545 Cr. (+62.3%).
  • High dividend yield of 5.80% provides steady returns.
  • FII holdings increased (+1.11%), showing foreign investor confidence.

⚠️ Limitation

  • Stock trading below 50 DMA and 200 DMA, indicating short-term weakness.
  • MACD negative (-1.89), suggesting bearish momentum.
  • DII holdings decreased (-1.04%), showing reduced domestic support.
  • 52-week performance at 28% is modest compared to peers.

📉 Company Negative News

  • Decline in DII holdings (-1.04%) signals cautious domestic outlook.
  • Stock underperforming near-term moving averages.

📈 Company Positive News

  • Strong quarterly profit growth (+62.3%).
  • FII holdings increased (+1.11%), reflecting foreign confidence.
  • Attractive dividend yield (5.80%).

🏭 Industry

  • Oil & gas sector remains cyclical but benefits from global energy demand.
  • Industry P/E at 15.1 indicates moderate valuations compared to BPCL’s discounted levels.

🔎 Conclusion

BPCL is a good candidate for swing trading due to strong earnings growth, undervaluation, and high dividend yield. Entry near ₹295–₹300 is favorable, with profit booking around ₹325–₹335. Despite short-term technical weakness, fundamentals and foreign investor support make it attractive. Risk management with a stop-loss below ₹290 is recommended.

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