The IIFL Securities Report: Buy Bharat Petroleum Corp Lt - July 30

IIFL Securities recommends buying Bharat Petroleum Corporation Limited (BPCL) shares, setting a target price of Rs 368. The current market price stands at Rs 356.5. This represents a potential upside of over 3%. The company is likely to benefit from strong refining margins and rising demand for petroleum products. BPCL's strong balance sheet and dividend yield also make it an attractive investment option.

About Bharat Petroleum Corp  Lt:

Bharat Petroleum Corporation Limited (BPCL) is an Indian state-owned oil and gas company headquartered in Mumbai, India. It is the third largest oil marketing company in India, with a market share of around 21%. The company is engaged in the refining, transportation, and marketing of petroleum products. BPCL operates 12 refineries in India, with a combined refining capacity of 35.3 million metric tonnes per annum. It also has a network of over 19,000 petrol pumps across the country.

52 Week Price Trend:

Bharat Petroleum Corporation Limited (BPCL), a leading Indian oil and gas company, is currently trading at Rs 356.5 on the NSE, significantly below its 52-week high of Rs 687.95. This implies a substantial decline of over 48%. However, BPCL's current price is still above its 52-week low of Rs 314.05, indicating potential for further recovery. The recent fall in BPCL's share price has been attributed to factors such as the global energy crisis, rising crude oil prices, and concerns about the impact of the Russia-Ukraine conflict on the oil market.

Stratzy's MOST Analysis:

With a MOST framework rating of AA-, BPCL exhibits medium fundamental risks. The rating considers BPCL's management efficiency, positive outlook, strong safety record, and stable trend. BPCL's strengths in these areas contribute to its overall resilience and ability to withstand market fluctuations. The rating suggests that investors should consider BPCL's medium risk profile before making investment decisions.

Company's Fundamentals:

Bharat Petroleum Corp Ltd (BPCL) is a company listed on the National Stock Exchange (NSE) of India. The company's stock price-to-earnings (PE) ratio is 4.47, which means that investors are willing to pay Rs. 4.47 for every rupee of earnings by the company. The price-to-book (PB) ratio of 1.92 indicates that the market value of the company's assets is 1.92 times its book value. The dividend yield of 3.35% represents the annual dividend per share as a percentage of the current market price. These metrics provide insights into the company's valuation, profitability, and dividend payout policy, helping investors make informed decisions about investing in BPCL.

Fundamental and Technical information provided in this blog were last updated on 30 Jul, 2024

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