BPCL Company Analysis

Company Profile  :  State owned company leader in Oil and Gas sector headquarter in Maharashtra.

The starting point of the company went back in pre independence era. Burma oil company incorporated in 1886, same year when first oil well was drilled in assam.  In 1976, government of India taken over Burmah shell group of companies and changes the name to Bharat Refineries limited which again changed to current name in 1977.

The company is operating in vast spectrum of products. From exploration to marketing of Petroleum products. With its large network with 6553 retail outlets and 1007 kerosene selling dealer and partnership with some big business like Pizza Hut, McDonald’s etc

The company also selling Engine oil, transmission oils, greases to 8000+ industrial customers. The company also provides Aviation Turbine Fuel to Aviation companies.

With more than  25 million customers, the company is leader in LPG supplier to householders with 2137 distributors across the country under the brand Bharat Gas.

With its two refineries and one subsidiary, it is maintaining big capacity in refinery also. Mumbai refinery having 12 million metric tonnes per annual and kocchi with 7.5. MMTPA. Subsidiary in Numaligardh holds 3 MMTPA.

The company is also official supplier of Naptha to all four Power plants in Andhra Pradesh.

Share Holding Pattern

Financials and Ratio

 2010-112011-122012-132013-142014-15 2015-16
Revenue 153260.81213674.75241795.19261529.19240286.86191315.49
Net Profit 1546.681311.272642.904060.885084.517431.88
NPM1.010.611.101.562.133.92
EPS 42.7836.2736.5556.1670.32102.78
Book Value 388.83412.51230.04269.11310.72375.60
Dividend Pay out 32.7230.3230.0930.2731.9930.16
Dividend per Share 1411111722.531
ROE 118.7915.8820.8622.6327.36
ROCE 8.366.9210.8711.9913.7016.77
ROA 2.761.993.945.607.299.78
Debt to Equity 1.171.421.421.030.520.5
Asset Turnover 271.38323.09358.44359.06341.44249.11

Future Prospects : Though it is Downstream Company, it holds stake in some oil fields. Like in Mozambique. Govt of India relaxes Subsidies on Fuel and gas. Company is also going through capital Expenditure which is helping it to increase its capacity. Though price of crude is increasing and as a result It may affect the company in short term but as a owner of oil field, it is expected to help them also. The time line given by company makes it clear that till end 2018 there will be no output from offshore asset. But right now also it is good for long term investor if planning to sell after 2018.

Disclosure : The stock is part of my long term portfolio, bought in 2015. No planning to sell. 

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter