" Energising the Nation " Bharat Petroleum Corporation Ltd Stock analysis and recommendation

 Bharat Petroleum Corporation Ltd is running Gas and petroleum sector incorporated in the year 1952 which is large Cap company having a market capital of Rs.79,492.27 Crore. The company is engaged in the business of refining Crude oil and marketing of petroleum products. The company provide services to more than 8000 customers with reliable supply of industrial and commercial petroleum products.The company's wholly owned subsidiary Bharat Petro Resources Ltd has participating interest in 27 blocks of which 15 are located in India and 12 overseas.

Key positive factors

• Stock is providing a good dividend yield of 12.11%
• Company has been maintaining a healthy dividend payout of 85%

Stock Analysis

During the FY 2020-21 the company generated a historical PAT of Rs. 19,042 Crores on standalone basis against Rs. 2683 crore of previous year PAT. Company acquired a gross revenue of Rs. 3,01,864.98 Crores in FY 2020-21. Company has a low P/E value of 5.77 with ROE and ROCE ranging to 27.8% and 18%. The intrinsic value of the stock ranges upto Rs. 700 and the stock is trading at a price of Rs. 363. For the quarter ended 31.12.2021, the company has reported a consolidated gross income of Rs. 95,914.55 Crore up 43.56% from last year same quarter. Company has reported net profit after tax of Rs. 2354.28 Crore in the latest quarter. On Oct 29, 2021 and Jan 31, 2022 , the company has announced dividend of 50% of its face value per equity share. The top MF ownership of BPCL is ICICI Pru value Discovery Direct-G with an investment of Rs. 418.61 Crore.  Promoter holding of the company is 52.98% as on Mar 2022. Company has spent less than 1% of its operating revenues towards interest expenses and 2.11% towards employee cost in the year ending 31 Mar 2021. 

The company is recommended by 34 stock analysts for a buy with a forecast price of Rs. 629 and a median target level of Rs. 490. With considering all these factors the stock can be selected for a buy. The data provided here are available from the annual report of the company and other news on websites.

If this content seems interesting to you stay tuned for more updates from this space. Also watch my previous article on Stock Market Trends. Review your suggestions in comment section.

IF YOU ARE CONFIDENT WITH YOUR WRITING AND COMMUNICATION SKILL THEN CONVERT YOUR SKILL TO MONEY. CHECK THE SIDEBAR OF THIS BLOG FOR MORE INFORMATION.