BPCL share price: Shares of Maharatna Stock Bharat Petroleum Corporation Limited will go ex-dividend today, August 19. BPCL has declared August 23 the record date to determine which shareholders are eligible for the dividend benefit, and the final dividend is expected to be paid within 30 days of the date of its statement at the PSU’s August 29 Annual General Meeting.
The company was renamed Bharat Petroleum Corporation Limited on August 1, 1977. It also turned out to be the first refinery to process newly found native crude oil (Bombay High) in the country. BPCL is engaged in the exploration, production and sale of petroleum and gasoline-related products.
The company’s board of directors stated in its regulatory filing earlier this year: “The board of directors has recommended a final dividend of Rs. 6/- per share of shares for the fiscal year ended March 31, 2022, subject to shareholder approval on the subsequent Annual General Meeting (AGM) The final dividend would be paid within 30 days from the date of its announcement at the AGM The final dividend is in addition to the first interim dividend of Rs 5/- per share of Rs 10 each and the second interim dividend of Rs 5/- per share of Rs 10 each paid for the fiscal year 2021-22 by the Company.”
BPCL reported losses even as revenue from operations rose to Rs 1.38 lakh crore from Rs 89,688 crore in April-June 2021. BPCL said it earned GRM of $27.51 a barrel in the quarter, down from $4.12 per barrel gross refining margin a year ago. However, the same was offset by losses incurred after fuel prices held up despite rising costs. “While marketing volumes of 12.3 million tons were up 23.4 percent year-on-year, marketing margins remained weak as a result of continued freezes in retail fuel price increases in India and rising product prices internationally. The mixed marketing margin was Rs 9,974/t, a multi-year low for the company,” said ICICI Securities.
Should you invest?
Although the company had a bad quarter, ICICI Securities hopes the 2024 fiscal year will bring better news for BPCL. “Despite this quarter’s miss, we are encouraged by the strength of the company’s refining metrics, robust marketing volumes and relatively stress-free balance sheet. Consolidated earnings will also likely see the benefit of improved refinery metrics,” she said. The stock is seen as a well-balanced downstream energy game, with fairly complex refining capacity, a large, albeit ‘risky’ upstream segment, and a marketing presence. EV/EBITDA based valuation yields a target price of Rs358/sh Repeat ADD,” ICICI Securities said.
Motilal Oswal, who remains neutral on the stock, predicts a small advantage from current prices. The brokerage firm noted that a softening in crude oil prices could bode well for the stock, but also drew attention to the moderation of GRMs, which could be a cause for concern if it corrects further. “BPCL is trading at 1.2x FY24 P/BV and we value the stock at 1.2x FY24E P/BV to reach our TP of Rs 340,” analysts said.
However, Ambit analysts remain bullish on BPCL and are repeating their ‘buy’ call on scrip after the quarterly results. “Reducing the negative marketing margin on diesel and gasoline due to softness of crude oil and cracks in the refinery would provide support. Also the highest use of refineries and middle distillate production under OMCs will be to his advantage,” they said.
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