BPCL Stock Price: Maharatna Stock Bharat Petroleum Corporation Limited shares will turn ex-dividend today, August 19. BPCL has declared August 23 as the record date to determine shareholders eligible for receiving the dividend benefit, and the final dividend is expected to be paid within 30 days from the date of its declaration at the PSU’s annual general meeting on August 29.
The company was renamed Bharat Petroleum Corporation Limited on 1st August 1977. It also emerged as the first refinery to process newly found indigenous crude (Bombay High), in the country. BPCL is engaged in the exploration, production, and retailing of petroleum and petrol-related products.
The board of directors of the company in its regulatory filing earlier this year stated, “The Board of Directors has recommended a final dividend of Rs. 6/- per equity share for the financial year ended 31st March 2022 subject to the approval of the shareholders at the ensuing Annual General Meeting(AGM). The final dividend would be paid within 30 days from the date of its declaration at the AGM. The final dividend is in addition to the first interim dividend of Rs. 5/- per equity share of Rs 10 each and the second interim dividend of Rs 5/- per equity share of Rs 10 each paid for the financial 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 that it earned GRM of $27.51 per barrel in the quarter as against $4.12 per barrel gross refining margin a year back. However, the same was negated by losses incurred after holding fuel prices despite the rising cost. “However, while marketing volumes at 12.3mt were 23.4 per cent YoY higher, marketing margins remained weak due to: continued freeze on retail fuel price hikes in India, and rising product prices internationally. Blended marketing margin was at Rs 9,974/t, a multi-year low for the company,” said ICICI Securities.
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Although the company faced a bad quarter, ICICI Securities hope Financial Year 2024 will bring better tiding for BPCL. “Despite the miss this quarter, we are encouraged by the strength in the company’s refining metrics, robust marketing volumes and relatively stress-free balance sheet. Consolidated earnings are also likely to see the benefit of improved refinery metrics,” they said. The stock is seen as a well-balanced downstream energy play, with reasonably complex refining capacity, a large albeit ‘at risk’ upstream segment and a marketing presence. “Our EV/EBITDA-based valuation delivers a target price of Rs358/sh. Reiterate ADD,” ICICI Securities said.
Little upside from today’s prices is projected by Motilal Oswal who remains Neutral on the stock. The brokerage firm noted that a softening of crude oil prices may bode well for the stock, but also drew attention to moderating GRMs which may be a cause of concern if it corrects further. “BPCL trades at 1.2x FY24 P/BV, and we value the stock at 1.2x FY24E P/BV to arrive at our TP of Rs 340,” analysts said.
However, analysts at Ambit continue to remain bullish on BPCL, reiterating their ‘Buy’ call on the scrip after the quarterly results. “Reduction in negative marketing margin on diesel and petrol due to softness in crude oil and refining cracks would provide support. Also, highest refinery utilization and middle distillates production among OMCs will bode in its favour,” they said.
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