NSEI:BPCL

Stock Analysis Report

Bharat Petroleum

Executive Summary

Bharat Petroleum Corporation Limited refines crude oil and markets petroleum products in India.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Bharat Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

BPCL

2.9%

IN Oil and Gas

1.4%

IN Market


1 Year Return

71.9%

BPCL

7.8%

IN Oil and Gas

2.3%

IN Market

Return vs Industry: BPCL exceeded the Indian Oil and Gas industry which returned 7.8% over the past year.

Return vs Market: BPCL exceeded the Indian Market which returned 2.3% over the past year.


Shareholder returns

BPCLIndustryMarket
7 Day-0.5%2.9%1.4%
30 Day29.0%10.7%2.7%
90 Day40.4%4.8%-1.4%
1 Year81.9%71.9%10.9%7.8%4.3%2.3%
3 Year30.1%11.3%45.3%30.4%20.9%14.9%
5 Year164.8%113.6%65.1%39.0%41.2%28.2%

Price Volatility Vs. Market

How volatile is Bharat Petroleum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bharat Petroleum undervalued compared to its fair value and its price relative to the market?

14.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BPCL (₹490.3) is trading above our estimate of fair value (₹175.56)

Significantly Undervalued: BPCL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BPCL is poor value based on its PE Ratio (14.8x) compared to the Oil and Gas industry average (12.7x).

PE vs Market: BPCL is poor value based on its PE Ratio (14.8x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

Low PEG Ratio: BPCL is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: BPCL is overvalued based on its PB Ratio (2.7x) compared to the IN Oil and Gas industry average (1.2x).


Next Steps

Future Growth

How is Bharat Petroleum forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BPCL's forecast earnings growth (6.6% per year) is below the savings rate (7.6%).

Earnings vs Market: BPCL's earnings (6.6% per year) are forecast to grow slower than the Indian market (18.1% per year).

High Growth Earnings: BPCL's earnings are forecast to grow, but not significantly.

Revenue vs Market: BPCL's revenue (5.5% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: BPCL's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BPCL's Return on Equity is forecast to be high in 3 years time (20.5%)


Next Steps

Past Performance

How has Bharat Petroleum performed over the past 5 years?

5.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BPCL's earnings have grown by 5.2% per year over the past 5 years.

Accelerating Growth: BPCL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BPCL had negative earnings growth (-25.1%) over the past year, making it difficult to compare to the Oil and Gas industry average (10.3%).


Return on Equity

High ROE: BPCL's Return on Equity (17.8%) is considered low.


Return on Assets

ROA vs Industry: BPCL's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: BPCL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Bharat Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: BPCL's short term assets (₹487.8B) do not cover its short term liabilities (₹531.1B)

Long Term Liabilities: BPCL's short term assets (487.8B) exceeds its long term liabilities (429.9B)


Debt to Equity History and Analysis

Debt Level: BPCL's debt to equity ratio (109.8%) is considered high

Reducing Debt: BPCL's debt to equity ratio has reduced from 145.8% to 109.8% over the past 5 years.

Debt Coverage: BPCL's debt is well covered by operating cash flow (22.7%).

Interest Coverage: BPCL's interest payments on its debt are well covered by EBIT (15.6x coverage).


Balance Sheet

Inventory Level: BPCL has a high level of physical assets or inventory.

Debt Coverage by Assets: BPCL's debt is covered by short term assets (assets are 1.087920x debt).


Next Steps

Dividend

What is Bharat Petroleum's current dividend yield, its reliability and sustainability?

3.88%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%0.6%markettop25%2.5%industryaverage2.5%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BPCL's dividend (3.88%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: BPCL's dividend (3.88%) is in the top 25% of dividend payers in the Indian market (2.51%)

Stable Dividend: BPCL's dividend payments have been volatile in the past 10 years.

Growing Dividend: BPCL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.3%), BPCL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BPCL's dividends in 3 years are forecast to be well covered by earnings (39.7% payout ratio).


Next Steps

Management

What is the CEO of Bharat Petroleum's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

D. Rajkumar (59yo)

3yrs

Tenure

₹10,537,079

Compensation

Mr. D. Rajkumar has been the Chairman and Managing Director of Bharat Petroleum Corporation Limited since October 1, 2016. Mr. Rajkumar has been the Managing Director of Bharat PetroResources Limited since ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether D.'s total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: D.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.8yrs

Average Tenure

59yo

Average Age

Experienced Management: BPCL's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

58yo

Average Age

Experienced Board: BPCL's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹4,162,741,43609 Mar 19
India
EntityCompany
Shares13,849,907
Max Price₹300.56

Ownership Breakdown


Management Team

  • D. Rajkumar (59yo)

    Chairman & MD

    • Tenure: 3yrs
    • Compensation: ₹10.54m
  • M. Mohan (68yo)

    Vice President of Administration

    • Tenure: 0yrs
    • Compensation: ₹2.98m
  • Neelakantapillai Vijayagopal (58yo)

    CFO, Director of Finance & Additional Director

    • Tenure: 0.8yrs
    • Compensation: ₹3.54m
  • Arun Singh (57yo)

    Director of Marketing & Additional Director

    • Tenure: 1yrs
  • S. Vijayakumar (62yo)

    Executive Director of Legal

    • Tenure: 0yrs
  • Kappagantula Padmakar (58yo)

    Additional Director & Director of HR

    • Tenure: 1.7yrs
    • Compensation: ₹7.80m
  • Ashok Gupta

    Chief Procurement Officer of Marketing

    • Tenure: 0yrs
  • Ramamoorthy Ramachandran (59yo)

    Director of Refineries & Additional Director

    • Tenure: 3.2yrs
    • Compensation: ₹9.47m
  • M. Venugopal (59yo)

    Compliance Officer & Company Secretary

    • Tenure: 2.6yrs
    • Compensation: ₹7.15m
  • Rajiv Bakshi

    Executive Director of Corporate Finance

    • Tenure: 0yrs

Board Members

  • D. Rajkumar (59yo)

    Chairman & MD

    • Tenure: 3yrs
    • Compensation: ₹10.54m
  • Rajiv Bansal (56yo)

    Government Director

    • Tenure: 1.9yrs
  • Neelakantapillai Vijayagopal (58yo)

    CFO, Director of Finance & Additional Director

    • Tenure: 0.8yrs
    • Compensation: ₹3.54m
  • Arun Singh (57yo)

    Director of Marketing & Additional Director

    • Tenure: 1yrs
  • Kappagantula Padmakar (58yo)

    Additional Director & Director of HR

    • Tenure: 1.7yrs
    • Compensation: ₹7.80m
  • Ramamoorthy Ramachandran (59yo)

    Director of Refineries & Additional Director

    • Tenure: 3.2yrs
    • Compensation: ₹9.47m
  • Rajesh Mangal (53yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: ₹1.88m
  • Vishal Sharma

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: ₹1.92m
  • Vinay Oberoi (62yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: ₹1.00m
  • Jane Mary Sundharam (65yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: ₹760.00k

Company Information

Bharat Petroleum Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bharat Petroleum Corporation Limited
  • Ticker: BPCL
  • Exchange: NSEI
  • Founded: 1952
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: ₹1.064t
  • Shares outstanding: 2.17b
  • Website: https://www.bharatpetroleum.com

Number of Employees


Location

  • Bharat Petroleum Corporation Limited
  • Bharat Bhavan
  • 4 & 6 Currimbhoy Road
  • Mumbai
  • Maharashtra
  • 400001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500547BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1995
BPCLNSEI (National Stock Exchange of India)YesEquity SharesININRSep 1995

Biography

Bharat Petroleum Corporation Limited refines crude oil and markets petroleum products in India. The company operates through two segments, Downstream Petroleum; and Exploration and Production of Hydrocarbo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:47
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.