BPCL - A Lucrative Investment for Long Term

Bharat Petroleum (NS:BPCL) Corporation Limited (BPCL) is a Public Sector Undertaking (PSU) with the Government of India holding 52.98% stake as on 31 March 2023. The Corporation operates in the petroleum industry in India. The Corporation is engaged in the business of refining crude oil and marketing of petroleum products. BPCL plans to increase its integrated refining and petrochemical capacities within the next five to seven years to meet growing energy demand

BPCL has set a target to end net carbon emission through its operations by 2040. To meet its net zero goal, it is investing 1 trillion rupees into generating renewable power, green hydrogen, compressed biogas, carbon capture utilization and storage, to offset its carbon emissions. BPCL set a target to build 2 gigawatts of renewable energy capacity by 2025 and 10 GW by 2035.

BPCL is also making strides in the electric mobility sector, having installed more than 3,100 electric vehicle charging stations across India, with plans to expand this network to 7,000 stations, focusing on establishing four wheeler fast chargers at around 6,000 retail outlets across 400 highway corridors in the next 5 years.

BPCL closed at a price of INR 299.55 on 06.12.2024.  BPCL current face value is INR 10 and its EPS (TTM) is 30.55 and its P/E is 9.81. BPCL record date was 22.06.2024 in which it issued 1:1 bonus. BPCL gave interim dividend of INR 21 and final dividend of INR 10.50 on 12.12.2023 followed by 09.08.2024.

The promoter & promoter shareholding is 52.98%. Mutual funds/Insurance & others hold 22.06%. Foreign Portfolio Investors category I & II hold 15.40%. Residents Individuals holding is 6.42%.

The future of BPCL looks very bright if investors hold it for a long term i.e. 15-20 years. As per estimate, BPCL may give many fold returns and issue several bonus issues in future. BPCL may give a lucrative dividend after a few years to investors if calculated after bonus price which may be competitive to Bank interest rates. The investor’s self-vigilance on the BPCL share is essential and its detailed analysis is required in future for the safety of their own investment.