Please refer to important disclosures at the end of this report
1
Bharat Petroleum Corporation Limited (BPCL) is engaged in offering motor spirit
(MS), high speed diesel (HSD) and liquefied petroleum gas (LPG). The Compan
y
is engaged in the business of refining of crude oil and marketing of petroleum
products. OMCs are enjoying golden days from the past two years post the fall in
crude prices. BPCL has for the last 2 years demonstrated the least volatility in
inventory impact among the 3 OMCs, reflecting its relatively better inventor
y
management than its peers. Marketing segment is showing record profits owing
to higher volumes at lower product prices and healthy marketing margins. OMCs
can see the story unbroken till crude prices are below US$ 60/bbl. BPCL’s
expansion at Kochi refinery is on track with units to be commissioned b
y
December 2016. The management expects 80% capacity utilization in FY18 from
the expanded unit. The petrochemicals project at Kochi being set up at a cost o
f
`46bn is expected be commissioned by mid-2018. BPCL owing to its superio
r
refining assets, rising capacity of Kochi refinery and possible upsides in
marketing margins can improve its financials going forward. The company has
shown a profit growth of 34.7% CAGR over the last 5 years and has reported a
good return on equity (ROE) of 26.07% for the last 3 years. The Company has
been maintaining a healthy dividend payout of 30.75% (Div. Yield: 2.41%).
Hence Buy.
BUY
CMP `643
Stock Info
Sector
Beta 0.7
Bloomberg Code
Shareholding Pattern (%)
Promoters 54.9
MF / Banks / Indian Fls 10.4
FII / NRIs / OCBs 22.3
Indian Public / Others 12.4
Abs. (%) 3m 1yr 3yr
Sensex (7.0) 2.5 25.4
P&G Hygiene 9.6 45.6 265.1
Reuters Code BPCL.BO
BPCL@IN
10
BSE Sensex 26,150
Nifty 8,074
Face Value (
`
)
Oil & Gas
Market Cap (
`
cr) 21,841
52 Week High / Low 695/366
Avg. Daily Volume 1,17,189
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Bharat Petroleum Corporation
Others | Oil & Gas
November 21, 2016
Bharat Petroleum Corporation | Oil & Gas
November 21, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Bharat Petroleum Corporation
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)