NSEI:BPCL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Bharat Petroleum

Executive Summary

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


Snowflake Analysis

Slightly overvalued with limited growth.


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

Stable Share Price: BPCL is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BPCL's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.7%

BPCL

1.7%

IN Oil and Gas

1.8%

IN Market


1 Year Return

-27.1%

BPCL

1.6%

IN Oil and Gas

7.9%

IN Market

Return vs Industry: BPCL underperformed the Indian Oil and Gas industry which returned 1.6% over the past year.

Return vs Market: BPCL underperformed the Indian Market which returned 7.9% over the past year.


Shareholder returns

BPCLIndustryMarket
7 Day-2.7%1.7%1.8%
30 Day9.1%-0.3%10.6%
90 Day-10.1%-7.9%9.7%
1 Year-23.1%-27.1%5.4%1.6%9.9%7.9%
3 Year-11.7%-24.9%29.4%16.1%8.5%3.2%
5 Year57.3%23.4%109.7%72.5%55.7%43.9%

Long-Term 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?

17.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BPCL (₹373) is trading above our estimate of fair value (₹146.7)

Significantly Below Fair Value: BPCL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BPCL is good value based on its PE Ratio (17.4x) compared to the IN Oil and Gas industry average (19.1x).

PE vs Market: BPCL is poor value based on its PE Ratio (17.4x) compared to the Indian market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: BPCL is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: BPCL is overvalued based on its PB Ratio (1.8x) compared to the IN Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Bharat Petroleum forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

17.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BPCL's forecast earnings growth (17.7% per year) is above the savings rate (7.2%).

Earnings vs Market: BPCL's earnings (17.7% per year) are forecast to grow slower than the Indian market (24.4% per year).

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

Revenue vs Market: BPCL's revenue (19.4% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: BPCL's revenue (19.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BPCL's Return on Equity is forecast to be low in 3 years time (18.7%).


Next Steps

Past Performance

How has Bharat Petroleum performed over the past 5 years?

-15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BPCL has a large one-off loss of ₹20.3B impacting its September 30 2020 financial results.

Growing Profit Margin: BPCL's current net profit margins (1.8%) are lower than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: BPCL's earnings have declined by 15.6% 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 (-35.7%) over the past year, making it difficult to compare to the Oil and Gas industry average (-27.5%).


Return on Equity

High ROE: BPCL's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is Bharat Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: BPCL's short term assets (₹437.6B) do not cover its short term liabilities (₹553.8B).

Long Term Liabilities: BPCL's short term assets (₹437.6B) do not cover its long term liabilities (₹541.0B).


Debt to Equity History and Analysis

Debt Level: BPCL's debt to equity ratio (101.7%) is considered high.

Reducing Debt: BPCL's debt to equity ratio has increased from 91.5% to 101.7% over the past 5 years.

Debt Coverage: BPCL's debt is well covered by operating cash flow (36.1%).

Interest Coverage: BPCL's interest payments on its debt are well covered by EBIT (10x coverage).


Balance Sheet


Next Steps

Dividend

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

3.92%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BPCL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BPCL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BPCL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BPCL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BPCL is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BPCL's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Kappagantula Padmakar (59 yo)

0.17

Tenure

₹6,967,100

Compensation

Mr. Kappagantula Padmakar has been Additional Director & Director of Human Resources at Bharat Petroleum Corp. Ltd. since February 1, 2018 and serves as its Chairman & Managing Director since September 1, ...


CEO Compensation Analysis

Compensation vs Market: Kappagantula's total compensation ($USD94.11K) is below average for companies of similar size in the Indian market ($USD948.26K).

Compensation vs Earnings: Kappagantula's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kappagantula Padmakar
Director of HR0.17yr₹6.97mno data
Neelakantapillai Vijayagopal
CFO, Director of Finance & Whole-Time Director1.92yrs₹6.51m0.00014%
₹ 1.1m
V. Kala
Company Secretary & Compliance Officer0.75yr₹3.60m0.000010%
₹ 80.9k
Rajiv Bakshi
Executive Director of Corporate Financeno datano datano data
M. Mohan
Vice President of Administrationno data₹2.98mno data
Sujata Chogle
Executive Director of Legalno datano datano data
Arun Singh
Director of Marketing & Refineries and Whole-Time Director2.08yrsno data0.00010%
₹ 809.1k
Sukhmal Jain
Head of Retail - Eastno data₹3.23mno data
S. Kelkar
Chief Manager of Employee Satisfaction Enhancementno datano datano data
Sunil Jain
Chief Vigilance Officer3.25yrsno datano data
T. Peethambaran
Head of Retail - Northno datano datano data
Surjeet Mahalik
Head of Retail -Northno datano datano data

2.1yrs

Average Tenure

59yo

Average Age

Experienced Management: BPCL's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kappagantula Padmakar
Director of HR0.17yr₹6.97mno data
Neelakantapillai Vijayagopal
CFO, Director of Finance & Whole-Time Director1.92yrs₹6.51m0.00014%
₹ 1.1m
Arun Singh
Director of Marketing & Refineries and Whole-Time Director2.08yrsno data0.00010%
₹ 809.1k
Kamala Ellangovan
Government Director2.67yrsno datano data
Rajesh Aggarwal
Government Nominee Director0.83yrno datano data
Harshadkumar Shah
Independent Director1.33yrs₹560.00kno data

1.6yrs

Average Tenure

58.5yo

Average Age

Experienced Board: BPCL's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹809.131b
  • 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 Analysis2020/11/28 12:01
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.